1980s in Hong Kong.html



1980s in Hong Kong marks a period when the territory is known for its wealth and trademark lifestyle. Hong Kong would be recognized internationally for its politics, entertainment and skyrocketing real estate prices.

Background

Kowloon, Tsim Sha Tsui, 1989

After being made a crown colony since 1843, the status of Hong Kong was changed effectively under British Nationality Act 1981 which enacted on 1 January, 1983. The Act renamed all existing British colonies to dependent territories. The renaming did not change how the government operated but it affected the nationality status of Hong Kong's then over 5 million inhabitants. Most of whom were to become British Dependent Territory citizens -- a status that could no longer be transmitted by descent.

Regardless of the competing claims for sovereignty, the PRC's's paramount leader Deng Xiaoping recognized that Hong Kong, with its free market economy, could not be assimilated into the People's Republic overnight and that any attempt to do so would not be in the interests of either. He advocated a far more pragmatic approach known as the One Country, Two Systems policy in which Hong Kong (as well as Macau, and proposed to Taiwan) would be able to retain their economic systems within the PRC. On 19 December 1984, the Sino-British Joint Declaration on the Question of Hong Kong (The Joint Declaration) was signed between the PRC and UK Governments. Under this agreement, Hong Kong would cease to be a British Dependent Territory on 1 July 1997 and would henceforth be a Special Administrative Region (SAR) of the PRC. Citizens opposing the handover led to the first wave of emigration.

Demographics

Population

Population in 1980 and 1985 was 5 million and 5.5 million respectively¹. The average household size was 3.9 people².

Immigration & Emigration

From 1978 to September 1980 nearly 23,000 illegal immigrants from mainland China entered Hong Kong. The government abolished the "reached-base" policy on 23 October 1980. After this date, any illegal immigrants captured would be sent back to their originating countries immediately. There were public outcries in the early 80s over decreasing wages due to the large influx of mainland immigrants raising supply against demand³.

On the other hand, citizens who were originally born in Hong Kong were beginning to migrate to the U.K., U.S. and Canada in large numbers due to the uncertainty of the handover in 1997. From 1980 to 1986, an estimated 21,000 people left Hong Kong permanently every year. Beginning in 1987 the numbers rose sharply to 48,000 people a year⁴.

Culture

Education

In the early 1980s Hong Kong's education system could only accommodate 2% of the youth who wanted to seek higher education. It wasn't until 1989 when the government decided to expand the programs domestically. Prior to this, it was expected that higher education be gained abroad⁵.

Entertainment

The mid-80s saw the popularizing of the walkman. It was one of the key factors in contributing to the rise of the cantopop culture. Anita Mui and Alan Tam were among the biggest popstars. Other shows related to Super Sentai and Transformers were translated and broadcasted regularly. The franchising of toy stores such as Toys "R" Us flooded the malls of Hong Kong. Japanese import stores like Sogo in Causeway Bay also made Hello Kitty a cultural icon.

Cinema

Domestic movies in the late 80s would put Hong Kong cinema on the international map. Jackie Chan was recognized for his acrobatic displays and his stunt team. Chow Yun-Fat, while having been known for his TV drama performances. His collaboration with John Woo set the de facto standard for triad films in A Better Tomorrow.

Natural disasters

In 1983, Typhoon Ellen came to Hong Kong and caused extensive damage, forcing the hoisting of Hurricane Signal No. 10.

Politics

In response to China's Tiananmen Square protests on May 27th, 1989, over 300,000 people gathered at Victoria park for a gathering called "Democratic songs dedicated for China". Many famous Hong Kong and Taiwan artists performed and expressed their support for the students in Beijing.

Economy

Manufacture

North Point, 1989

In the early 1980s younger Hong Kong workers began avoiding the manufacturing industry entirely. The lack of rejuvenation along with China's economic reform began opening up manufacturing to the mainland. Middle-aged men and women who spent the past decades in manufacturing were suddenly left with no place to go. The industry in Hong Kong peaked in 1989 with textiles and clothing exports counting up to 50% of domestic exports valued at USD $11 billion⁶.

Real Estate

In 1960 University of Hong Kong and Hong Kong Technical College was one of the first schools to offer real estate education, but the curriculum was considered a sub program. 21 years later, the University of Hong Kong became the first institution to be accredited by the RICS in 1981. It was the first step in connecting real estate education and the industry itself⁷. By 1983, 61% of capital investments belonged to the real estate sector. The amount of money entering the communities for infrastructure expenses in the 1980s eclipsed the sum of all real estate investments from 1940 to 1979⁸. An up-to-date understanding of the industry along with the high density population provided many with the opportunity to capitalize on realty sales. Areas like Lan Kwai Fong were improving at the time and became an "alternative" or "open" avenue to attract people who wanted things different⁹. If construction wasn't open before, many areas found themselves redeveloping.

Finance

The lack of foreign exchange control and low tax contributed to the competitiveness of Hong Kong's economy. Though a floating rate, coupled with panic about the intensified political talk of the handover sent consumer confidence to an all-time low causing Black Saturday in 1983. The end result is that Hong Kong adopted a linked exchange rate system. The exchange rate between Hong Kong dollar and United States dollar was fixed at HKD $7.8 = US $1. The Hong Kong Monetary Authority's exchange fund was responsible for keeping the market rate stable¹⁰. In the short period from just a decade ago, inflation would also increase from a rate of 5% in the 1970s to 12.7% by 1983¹¹.

References