HONG KONG: President Xi Jinping inspected troops based in Hong Kong on Friday as he asserts Chinese authority over the former British colony China took control of 20 years ago.Xi rode in an open-top jeep past rows of soldiers lined up on an airstrip on his visit to the People's Liberation Army garrison. He called out ``Salute all the comrades'' and ``Salute to your dedication'' as he rode by 3,100 soldiers arranged in 20 formations.Armored personnel carriers, combat vehicles, helicopters and other pieces of military hardware were arrayed behind the troops.It was a rare display of the Chinese military's might in Hong Kong, where it normally maintains a low-key presence.Xi, who's also chairman of the Central Military Commission, wore a buttoned-up black jacket in the steamy heat during his 10-minute review of the troops at the Shek Kong base in Hong Kong's suburban New Territories. It's part of a visit to mark the 20th anniversary of Hong Kong's handover, when Britain gave up control of the Asian financial hub to China on July 1, 1997.Hong Kong was granted the freedom to run most of its affairs after it came under China's control under the ``one country, two systems'' principle. However, Beijing is in charge of the city's defense and foreign affairs and the troops based in the city are deployed from the mainland,The Chinese military has its headquarters in a former British base downtown and has other installations around the city but troops are typically confined to base.Xi's three-day visit to mark the anniversary includes presiding at the inauguration of the city's new leader, Carrie Lam, on Saturday.Security has been tight for his visit as authorities brace for protests.Some 26 people, including young activist leader Joshua Wong, have been released on bail after being arrested for protesting on Wednesday. The department said Friday the activists have not been charged but are required to report back to police in September.The activists, some of whom were detained more than 30 hours, had climbed onto a giant flower sculpture that was a gift from Beijing and is near the hotel complex where Xi is staying.Pro-democracy supporters fear Beijing is tightening its grip on Hong Kong and undermining guarantees of wide autonomy under ``one country, two systems.'' U.S. officials said they were concerned that China's communist leaders weren't sticking to their promises.``Looking ahead to the remaining 30 years of `one country, two systems,' we cannot allow Hong Kong to go the way of Beijing's failed authoritarianism,'' U.S. Sen. Marco Rubio, chair of the Congressional-Executive Commission on China, said in a statement.</s>Chinese President Xi Jinping landed in Hong Kong yesterday to mark the 20th anniversary of Beijing taking control of the former British colony, accompanied by a formidable layer of security as authorities showed little patience for pro-democracy protests.

After stepping off his Air China plane, Xi said he envisioned “stable development” of Hong Kong’s “one country, two systems” framework. Pro-democracy activists fear Beijing is undermining the principle — agreed upon when Britain handed over the city back to China — which guarantees Hong Kong can mostly run its own affairs and keep civil liberties including free speech until 2047.

Xi’s three-day visit culminates tomorrow when he will oversee an inauguration ceremony for the Asian financial hub’s new leader, Carrie Lam.

Pro-democracy activists staged protests ahead of his visit and more were expected, including an annual march through the streets tomorrow that has drawn big crowds in the past. Hong Kong authorities were taking no chances with disruptions and deployed heavy security across the city.

Helicopters hovered overhead and police and barricades lined the streets around a downtown convention center and hotel complex where Xi was expected to spend most of his time. Officers questioned passers-by taking photos of the few protests allowed near the area. Authorities even glued the gaps between sidewalk paving stones in an effort to prevent them from being torn up and thrown by protesters.

Three pro-democracy groups said 26 of their members were arrested Wednesday evening on public nuisance charges for staging a sit-in at a giant flower sculpture near the complex. They were still detained hours after Xi arrived. Police have the power to hold them up to 48 hours.

Those arrested included Joshua Wong, the young activist who helped lead 2014’s “Umbrella Movement” protests, and Nathan Law, another student protest leader who was elected to the legislature last year.

Xi is visiting to mark the 20th anniversary of Hong Kong’s

 handover, when Britain ceded control of its colony to China at the stroke of midnight on June 30, 1997.

“It’s been nine years since I last set foot in this place. I’m thrilled,” Xi said on the airport tarmac. “Hong Kong has been tugging away at my heart,” he said, adding that the anniversary of Hong Kong’s “return to the motherland” on Saturday is “a big deal, a joyous occasion for the country and for Hong Kong.”

He said one of the purposes of his trip is to plan for Hong Kong’s future.

“We would like to look back at Hong Kong’s extraordinary journey over the past 20 years, to learn from our experience, and look forward to the future to ensure the stable development of ‘one country, two systems,’” he said in brief remarks before speeding off in a motorcade without answering questions.

Hong Kongers have grown concerned Beijing is backtracking on “one country, two systems” following a string of recent incidents, most notably the secret detention of five Hong Kong booksellers on the mainland.

Xi later visited the site of an arts hub under construction in West Kowloon district and was due to attend a banquet with government officials.

On Friday, he’s expected to inspect Chinese troops at a People’s Liberation Army base. China’s only aircraft carrier, the Liaoning, will pay its first Hong Kong port call to mark the PLA’s 20 year-presence in the city, the Defense Ministry said.

The ship, commissioned in 2012, and its battle group departed northern China on a training mission earlier this week and will likely pass through the Taiwan Strait along its voyage to Hong Kong.

Speaking at a monthly news briefing, ministry spokesman Col. Wu Qian said the ship would take part in “celebratory activities,” but gave no details. Media reports said the ship would arrive in Hong Kong on July 7 for a two-day visit. AP

Hong Kong stocks jumped the most in more than a week, in a rally coinciding with Chinese President Xi Jinping’s visit to the former British colony to mark the 20th anniversary of the city’s handover to the mainland, Nikkei agency reported.

The Hang Seng Index rallied 1.1 percent. More than half the gauge’s 282-point gain yesterday was added by HSBC Holdings, a heavyweight British bank that climbed 6.3 percent, the most since the depths of the global financial crisis, to HKD72.80. The gains followed the Federal Reserve’s signal Wednesday that U.S. lenders were healthy enough to use extra capital on share buybacks and dividend payouts.

Adding to the cheer, Morgan Stanley raised its price target on the stock to HKD84 from HKD70 in a report released late Wednesday, saying it expects “the narrative on HSBC to flip from prior concerns on the dividend to a debate on how to deploy excess capital.” Hang Seng Bank, a Hang Seng Index constituent that is majority owned by HSBC, advanced 2.8 percent, while Standard Chartered, also a London-headquartered lender as HSBC, added 4.4 percent.

President Xi arrived yesterday for the first time since he assumed power amid a tight security blanket enveloping parts of the city.

Yesterday’s rally took the Hang Seng Index’s advance so far in 2017 to 18 percent, ranking it among Asia’s best-performing equity benchmarks. Still, valuations that are “not too stretched” offer a layer of comfort, according to Victor Au, chief operating officer at Delta Asia Securities.

According to Nikkei, the Hang Seng Index currently trades at 13.7 times its earnings, compared with 14.6 times for the Shanghai Composite Index and a multiple of 21.6 for the S&P 500 Index.

The Shanghai gauge, meanwhile, added 0.5 percent yesterday, taking its increase this year to 2.7 percent. Mainland shares have underperformed Hong Kong this year amid concern over curbs imposed by policy makers to contain financial- and property-sector risks.

However, the People’s Bank of China will hold off on further tightening of its monetary policies, and could even loosen them slightly in coming months to prevent growth from slowing too sharply, Reuters reported Wednesday, citing policy advisers at the central bank.

“I’m quite sure that after July, or in the middle of the third quarter, they’ll try to reengineer strong growth,” Delta Asia’s Au said, quoted by Nikkei.</s>Xi, who oversees the PLA in his role as head of the powerful Central Military Commission, repeatedly shouted, "Hello comrades!" and "Comrades, you are working hard!" into four microphones fixed atop his motorcade as martial music blared in the background.

The troops, divided into squadrons of 20, responded in unison: "Hail to you chief!" and "Serve the people!"

Xi's visit to the Shek Kong barracks in a quiet and lush corner of Hong Kong's New Territories came on the second day of his first trip as president to the financial hub, where he is marking the 20th anniversary of the city's handover from British to Chinese rule.

He will oversee the swearing-in of Hong Kong's new leader, Carrie Lam, on Saturday.

Xi and invitation-only guests were treated to troops parading in immaculate uniforms and a military display that included Z8 helicopters, mobile air defense missile trucks, armored cars and light tanks.

His visit comes amid heightened tensions between China and Hong Kong, where many people are concerned at what they perceive to be increasing interference by Beijing in the city's affairs.

Britain returned Hong Kong to Chinese rule on July 1, 1997, under a "one country, two systems" formula that guarantees wide-ranging freedoms and judicial independence unseen in mainland China.

More than 100,000 people took to the streets in 2014 to protest against Beijing's refusal to allow full democracy.

The battle for full democracy in Hong Kong has been a defining issue for the city of 7.3 million. It has sown distrust between China and Hong Kong, polarized politics, hampered governance and stoked mass protests.

The presence of the PLA in the city has long been one of the most sensitive parts of the city's reversion to Chinese rule, but the garrison has kept a noticeably low-key presence.

Hong Kong's large and well-equipped police force - dominated by Hong Kong recruits - remains responsible for routine domestic security and was protecting the streets surrounding the base on Friday.

Xi's formal inspection echoed that performed by his predecessor, Hu Jintao, at the same Shek Kong airfield five years ago.

Standing before a bank of microphones in an open-car in sweltering temperatures of more than 30 degrees Celsius ((86 degrees Fahrenheit), Xi reviewed straight-backed ranks of soldiers, sailors and air force personnel, who saluted as he passed.

While its precise numbers are unknown, foreign envoys and diplomats believe the garrison includes between 8,000 and 10,000 personnel, including infantry and special forces troops.

It is split between a network of barracks and facilities inherited from the British military in Hong Kong, as well as bases across the border in Guangdong, where its jet fighter planes are kept.

While Shek Kong is protected by modern air defense systems, much of the garrison is relatively lightly armed, with armored personnel carriers and light tanks on show.

Troops at the base are kept behind barrack walls and well away from entertainment spots and media influences – a far cry from the occasionally rowdy British troops based in Hong Kong.</s>HONG KONG—Chinese President Xi Jinping landed in Hong Kong Thursday to mark the 20th anniversary of Beijing taking control of the former British colony, accompanied by a formidable layer of security as authorities showed little patience for pro-democracy protests.

After stepping off his Air China plane, Xi said he envisioned “stable development” of Hong Kong’s “one country, two systems” framework. Pro-democracy activists fear Beijing is undermining the principle — agreed upon when Britain handed over the city back to China — which guarantees Hong Kong can mostly run its own affairs and keep civil liberties including free speech until 2047.

Xi’s three-day visit culminates Saturday when he will oversee an inauguration ceremony for the Asian financial hub’s new leader, Carrie Lam.

Pro-democracy activists staged protests ahead of his visit and more were expected, including an annual march through the streets on Saturday that has drawn big crowds in the past. Hong Kong authorities were taking no chances with disruptions and deployed heavy security across the city.

Helicopters hovered overhead and police and barricades lined the streets around a downtown convention centre and hotel complex where Xi was expected to spend most of his time. Officers questioned passersby taking photos of the few protests allowed near the area. Authorities even glued the gaps between sidewalk paving stones in an effort to prevent them from being torn up and thrown by protesters.</s>Hong Kong police clashed with protesters on Saturday as Carrie Lam was sworn in as the city's new leader on the 20th anniversary of its handover from British to Chinese rule.

Lam became the semi-autonomous Chinese region's chief executive in a ceremony presided over by Chinese President Xi Jinping.</s>In Hong Kong they don’t gild the lily, they gild the bauhinia. A giant golden statue of the orchid-like flower, which is the symbol of the rambunctious Asian city state, stands in the middle of a harbour-side square in the Wan Chai district. It was erected 20 years ago to commemorate the official handover of Hong Kong from British colonial supervision to the authority of Beijing and the Chinese Communist Party.

In the shadow of the golden bauhinia on Saturday China’s President, Xi Jinping, will deliver a speech in front of city officials to mark the occasion on 1 July 1997 when, after 150 years of British colonial rule, Hong Kong reverted back to the sovereignty of Beijing. He will also swear in Hong Kong’s new political “chief executive” Carrie Lam. In the evening fireworks will explode over Victoria Harbour.

But the bauhinia’s golden sheen of Hong Kong-Beijing unity has been badly tarnished. And Xi, for all the warm and bland words he will deliver, knows it.

On Wednesday the statue itself was occupied by local pro-democracy activists, who draped a black cloth over the six-foot flower to symbolise “the hardline rule of the [Beijing] authoritarian regime”.

The demonstrators were arrested. But there will be further protests on Saturday, with a pro-democracy march expected to attract tens of thousands of supporters. Xi will deliver his speech amid unprecedented security. Around a third of the Hong Kong police force, some 11,000 officers, will be deployed to keep order.

Twenty years ago, London and Beijing agreed to a “one country, two systems” compromise over Hong Kong. A “Basic Law” constitution, guaranteeing a high level of autonomy for the region and respect for its citizens’ civil and political rights (far greater than anything enjoyed by the citizens of mainland China) was put into effect. Under a joint declaration, the former colony’s way of life was supposed to remain unchanged for 50 years.

And some things haven’t changed. The territory’s GDP growth rate has averaged just over 3 per cent since 1997, roughly half the rate of the previous two decades. But this reflects the natural slowdown of a maturing economy and the backwash of global economic forces more than malign influence from the mainland. The reality is that Hong Kong’s economy has been largely left alone by Beijing. And a surge of mainland money and tourism have helped Hong Kong’s economy, rather than hindered it.

The People’s Liberation Army, which moved a garrison into the territory 20 years ago, has been a relatively unobtrusive presence. The courts are still independent. The press is still largely free. The civil service is still uncorrupted.

Yet there has been a subtle political asphyxiation. A move to a wider suffrage, which democracy activists insist they were promised by Beijing in 2007, has not materialised. Lam was selected by a committee of just 1,200 Hong Kong residents. The favoured political candidates of Beijing have ascended to power in the territory and around half of the members in the 70-seat legislature are loyal to Beijing. There have been attempts to enforce a “patriotic” and pro-Communist Party education in Hong Kong schools.

But the most chilling manifestation of Beijing’s authoritarian infiltration has been the kidnapping in 2015 of five Hong Kong booksellers for peddling works making salacious claims about top Communist Party officials. Few expect these kinds of incursions to end. One thing Xi has proved since he became China’s president in 2012 is that he is no political reformer, as his Government’s record of locking up bloggers and civil rights lawyers on the mainland shows.

Hong Kong’s massive pro-democracy Umbrella Revolution of 2014 was divisive. Some of the older generation of Hong Kongers were alienated by the zealousness of the polite children, who occupied downtown districts for weeks. But the general restiveness in Hong Kong is real, and certainly not just confined to a minority of young hotheads.

Frustration, often sadly manifesting itself as outright bigotry, towards the one and a half million mainlanders who have moved to Hong Kong, pushing property prices into the stratosphere, is expanding. A growing number of Hong Kong’s residents say they would like to emigrate. Fear over the future – political, economic and cultural – is palpable.

Twenty years have now passed since the royal yacht Britannia, bearing the last Governor of Hong Kong, Chris Patten, glided out of Victoria Harbour. But what do the next 20 hold for Hong Kong?

The International Monetary Fund expects its growth rate to pick up to 3 per cent a year, as China’s gradually declines to below 6 per cent. But the city’s economic fortunes are likely to increasingly ebb and flow with those of its giant neighbour, which is struggling to pivot to a more sustainable, less debt-driven and polluting, form of growth.

The same, whatever was agreed by London and Beijing two decades ago, is likely to be true of Hong Kong’s political fortunes. British ministers lacked the courage to stand up to Beijing over Hong Kong’s political freedoms even before the Brexit vote. Now, sucked into the vortex of extricating Britain from the European Union and desperate to do a major trade deal with Beijing to offset the economic damage of Brexit, London lacks even that ability or desire to speak out. More than ever, the people of Hong Kong know they are on their own.

Ben Chu is the author of 'Chinese Whispers: Why Everything You’ve Heard About China is Wrong'</s>Soon, the only territory Britain still held was the trading outpost of Hong Kong, a successful free economy with a vibrant civil society and the rule of law — and a haven for people fleeing impoverishment and repression on mainland China after the communists came to power in 1949.

But Hong Kong lacked democracy. In the 1940s and ’50s, there were anxieties in both Britain’s Foreign Office and Hong Kong’s local administration. People were understandably worried that political arguments in Hong Kong would be dragged into the struggle between the communists and the Kuomintang on the mainland and in Taiwan.

China’s communist leaders warned Britain against passing democratic reforms in Hong Kong: It was anathema to encourage locals to think that they might be destined for an independent future as a nation state like Singapore.

The business community in Hong Kong also convinced British colonial authorities that the locals were not interested in politics; they just wanted to get on with business. I suppose it feared that elections might produce administrations keen on income redistribution.

So we British educated young Hong Kongers in their universities, encouraging them to read books about democracy and pluralism while telling them that these things were not for them.

As 1997 – the year Britain’s lease over the territory would run out – came over the horizon, the British and Chinese governments began discussing the terms under which Britain should hand sovereignty over Hong Kong back to Beijing.

In the early 1980s, China’s paramount leader, Deng Xiaoping, produced the “one country, two systems” formula: Hong Kong would return to the motherland but retain its autonomy and way of life. This position was then turned into a binding treaty between China and Britain, the Joint Declaration. The deal underlined the importance of beginning Hong Kong’s democratization.

When I arrived as governor in 1992, the pass had been largely sold on the pace of democracy. Limited changes were spelled out in the Basic Law, Hong Kong’s mini-constitution, which had been adopted in 1990.

I tried to make the proposed electoral arrangements as fair and free as possible, for example by considerably extending, not the number of directly elected legislators, but the size of the electorate that could vote for them. Yet so far as the election of the chief executive, Hong Kong’s top position, was concerned, Beijing insisted on vetting all candidates for the post. A committee, largely of people handpicked by China, would then select a winner among them.

The last colonial government put in place as many defenses as possible to protect Hong Kong’s independent judiciary, the rule of law, human rights, freedom of speech and civil society. We passed legislation to protect Hong Kong’s pluralist society, in addition to very limited measures to make the city more democratic. This was pretty modest stuff. But it was enough to bring down on my head a torrent of abuse from Chinese Communist Party officials.

Back then, my greatest worry about Hong Kong’s prospects after 1997 was that it would simply become the richest city in China. I never feared that the Chinese Army would march in and run things itself.

Thanks to the people of Hong Kong — not least its young citizens — this has not happened. There is a real sense there of what Hong Kong’s citizenship means and of the interconnections between the rule of law, pluralism and prosperity.

At the same time, I have always thought it was extremely unwise to allow this feeling to morph into a campaign for independence. It would dilute support for democratic development in Hong Kong. And it would play into the hands of Beijing hard-liners.

Beijing, on the other hand, has never really understood Hong Kong’s way of life. It talks a lot about “one country, two systems,” without making much effort to understand Hong Kong’s system.

For a time after the handover, the worst that Beijing did was to push back against the very limited progress that had been made toward democracy. Instead of allowing people in Hong Kong to decide the arrangements for their elections – something which had been promised – the Chinese communists started taking the process into their own hands.

The government of President Xi Jinping of China has gone much further in recent years. Beijing’s office in Hong Kong interferes more and more with the administration of Hong Kong, which is supposed to be handled autonomously by locals.

There have been attacks on the independent judiciary and the rule of law. Beijing intervened in a court case against legislators-elect who advocate independence for Hong Kong. Local publishers who produced books critical of the Chinese leadership and a billionaire who seemed to know too much about corruption within the Chinese Communist Party were abducted. Universities and the media in Hong Kong have come under pressure from China supporters.

President Xi is in Hong Kong this weekend to swear in its new chief executive, Carrie Lam, a former government official, who was elected by just a few hundred local citizens. She is best known for refusing to have any dialogue with the pro-democracy protesters of the Umbrella Movement in 2014, while she was the No. 2 in the Hong Kong government.

Hong Kong is a small place, but its fate will loom large over the 21st century. For what happens there will answer the question: Can China be trusted?</s>Hong Kong (CNN) On July 1, as Hong Kong marks 20 years of Chinese rule, the city gets a new leader.

Carrie Lam will be sworn in after she was selected by a Beijing-dominated committee in March to be the next Hong Kong Chief Executive.

Lam succeeds her former boss, CY Leung, who chose not to seek a second term and is leaving office with one of the lowest approval ratings of any Hong Kong leader.

It is the "ultimate aim" of Hong Kong's mini-constitution, Basic Law, that the city's leader and the entirety of the legislature be elected "by universal suffrage."

As deputy leader, Lam led the government's political reform efforts. "Like many people in Hong Kong, I of course want to see one person, one vote," she told CNN. "I tried very hard to deliver this ... but unfortunately it was not supported by some of the politicians."

Mathew Wong, an expert on Hong Kong politics at HKU, said the real decision lies with the central government and "Beijing has strong reservations about restarting reform."

"The last (effort) triggered the Umbrella Movement," Wong said. "In addition, Beijing has been insisting that the last reform proposal was a universal suffrage proposal, but the democrats turned it down."

Some warn the law could be used as an excuse to crack down on criticism of the government or discussing controversial topics like Hong Kong independence.

A previous attempt to implement Article 23 drew more than 500,000 people into the streets in 2003 and resulted in the proposed legislation being shelved and the minister responsible forced to resign.

Lam said critics were misguided, as all governments "need to protect their country and protect their countrymen" and in any case "freedom and human rights ... are also enshrined in Basic Law" and would therefore be protected.

She added that while this was a "constitutional responsibility," previous attempts showed her administration would first need to "create a condition" where passage of Article 23 could be supported, before introducing any bill.

Grenville Cross, a former Hong Kong director of public prosecutions, said that critics of Article 23 may be undermining themselves by forever blocking its passage.

"If Hong Kong doesn't enact these laws on its own then hardliners in the (Beijing government) might gain the upper hand and say ... we must take matters into our own hands," he said.

Lam said she will work to "diversify Hong Kong's economy" in order to provide more opportunities for young people and "inject as much innovative thinking as possible" into the housing market.

She said she would introduce home ownership as a key policy objective of her government, "to try to let people to get a chance to own."

While her predecessor was criticized for not standing up to Beijing, Lam said her role was to act as a bridge between the city and the central government.

"I have to be honest, I have to tell the central authorities the feelings and sentiments of Hong Kong people, and if there are things I feel that we can handle, and they are totally in line with the provisions of the Basic Law, then Hong Kong should be given a free hand," she said.

"The important thing is ... under 'one country, two systems,' we have full pride in being Chinese, and feeling proud of the progress made by the country," she said. "But at the same time, retaining as much as possible of Hong Kong's uniqueness and characteristics."</s>President Xi Jinping is in Hong Kong to commemorate the 20th anniversary of the handover of the former British Colony to China.

Xi inspected troops today during a stop at the People's Liberation Army garrison in the New Territories where he rode an open-top jeep and saluted soldiers.

Armoured personnel carriers, combat vehicles, helicopters and other pieces of military hardware were arrayed behind the troops.

President Xi called out 'Salute all the comrades' and 'Salute to your dedication' as he rode past 3,100 soldiers arranged in formations.

The President is also Chairman of the army and the troops referred to him as Chairman when saluting.

The inspection today was a rare display of the Chinese military's presence in Hong Kong.

Armoured personnel carriers, combat vehicles, helicopters and other pieces of military hardware were arrayed behind the troops.

Xi is in Hong Kong to mark the 20th anniversary of Hong Kong's handover to China on July 1, 1997.

Hong Kong is a special administrative region and runs its affairs under the 'one country, two systems' principle. However Beijing is in charge of the city's defense and foreign affairs. The troops in the city are deployed from mainland China.

Hong Kongers have much more freedom thanks to the 'one country, two systems' principle allowing the region to have its own legal system, freedom of assembly and free speech.

Because of this, many young people in Hong Kong are concerned about the future of the region.

Security has been tight for President Xi's visit as locals vowed to protest. Parts of the region are in lockdown with several areas closed to the public.

Some 26 people including young activist leader Joshua Wong have been released on bail after being arrested for protesting on June 28. The activists climbed onto a giant flower sculpture that was a gift from Beijing and is close to the hotel complex where Xi is staying.

President Xi will also swear in new Chief Executive Carrie Lam before heading back to Beijing on June 1.</s>Chinese President Xi Jinping and his wife Peng Liyuan arrive at the airport in Hong Kong, China, ahead of celebrations marking the city's handover from British to Chinese rule, June 29, 2017.

HONG KONG (Reuters) - Chinese President Xi Jinping said on Thursday China would work to ensure a "far-reaching future" for Hong Kong's autonomy, but he faces a divided city with protesters angered by Beijing's perceived interference as it marks 20 years of Chinese rule.

Britain returned Hong Kong to Chinese rule on July 1, 1997, under a "one country, two systems" formula which guarantees wide-ranging freedoms and judicial independence unseen in mainland China.

Beijing has promised Hong Kong's capitalist system will remain unchanged for "at least" 50 years until 2047, but it has not clarified what happens after that.

"Hong Kong has always tugged at my heartstrings," Xi said on arrival at Hong Kong airport for the handover anniversary in front of flag-waving crowds at the start of a three-day visit.

"... We are willing, together with different sectors of Hong Kong society, to look back on Hong Kong's unusual course in the past 20 years, draw conclusions from the experience, look into the future and to ensure 'one country, two systems' is stable and has a far-reaching future."

Xi's message was consistent with those of other senior Chinese leaders visiting Hong Kong, that Beijing will safeguard the city's development and prosperity.

In reality, however, fears of the creeping influence of Communist Party leaders in Beijing have been starkly exposed in recent years by the abduction by mainland agents of some Hong Kong booksellers who specialised in politically sensitive material and Beijing's efforts in disqualifying two pro-independence lawmakers elected to the city legislature.

Xi did not respond to journalists, including one who asked whether Liu Xiaobo, China's Nobel Peace Laureate and jailed dissident, would be released and allowed to travel overseas to be treated for cancer.

Speaking later, Xi praised Hong Kong's outgoing leader, Leung Chun-ying, who cracked down hard on pro-democracy Occupy protests in 2014, for his substantial contributions to the country, "especially safeguarding national security".

"These past five years have not been easy at all," Xi added.

He urged officials to support incoming leader Carrie Lam, who will be sworn in on Saturday, and contribute to the "China dream".

An annual July 1 protest pressing social causes, including a call for full democracy, is expected to take place after Xi leaves on Saturday. On Wednesday night, police arrested several well-known pro-democracy activists, some of whom scrambled up a monument symbolising the city's handover from British to Chinese rule.

Among them was student leader Joshua Wong, who said on his Facebook page on Thursday his detention for more than 16 hours was highly unusual and police had yet to take his statement.

Hong Kong "Has Been Lied to"

Part of the major rift under Chinese rule in Hong Kong has been a push by activists, including the 2014 street protests, to get China to live up to a constitutional promise under Hong Kong's mini-constitution to allow universal suffrage as an "ultimate aim".

"This promise has been shattered under the watchful eyes of the whole world," organisers of Saturday's planned rally wrote in a statement. "Hong Kong has been lied to for 20 years. Let's retake Hong Kong for a real and fully fledged democracy."

A massive security presence is expected with thousands of police deployed to maintain order as protests simmer.

At least 200 protesters sat in sweltering heat outside Hong Kong's highest court on Thursday night to demand the release of dissident Liu.

"Xi Jinping should release Liu Xiaobo," said Annie Tam, who watched as her six-year-old son held a candle. "I respect Liu very much. He really is sacrificing himself for democracy."

The streets of Hong Kong have been festooned with Chinese banners and paraphernalia, including two huge harbourfront screens carrying celebratory messages. Upwards of 120,000 youngsters will join China patriotic activities at a time of growing disillusionment with Beijing among the city's younger generation.

"We ... just hope our people can live in peace and contentment," said Lee Wing-lung, 66, a retired engineer standing opposite the hotel where Xi is staying, taking snapshots with his phone.

"I hope Hong Kong can have a good and peaceful atmosphere."

British Foreign Secretary Boris Johnson said in London Britain hopes that Hong Kong will make more progress towards democracy.

"As we look to the future, Britain hopes that Hong Kong will make more progress towards a fully democratic and accountable system of government," Johnson said in a statement.

"Britain’s commitment to Hong Kong – enshrined in the Joint Declaration with China – is just as strong today as it was 20 years ago."

Many observers point out that the British did nothing to promote democracy until the dying days of more than 150 years of colonial rule. Britain, looking for new trade partners as Brexit approaches, is also keen not to upset China, the world's second-largest economy.

Chris Patten, Hong Kong's last governor, told the Guardian newspaper British "kowtowing" to China would become increasingly craven after Brexit.
Carrie Lam is sworn in as the first female Chief Executive of Hong Kong by President Xi Jinping amid protests against the 20th anniversary of the transfer of sovereignty to China.