Article from CNN/buisness.
Hong Kong's real significance these days is in the services and stability it offers multinational companies and China itself.
China is the world's second largest recipient of foreign direct investment, and nearly two-thirds of that flows through Hong Kong.
One major selling point is Hong Kong's ironclad rule of law and its independent judiciary. Businesses place an enormous amount of faith in the city's ability to resolve disputes fairly. They have no such faith in China's courts.
Hong Kong also plays a valuable role in China's efforts to promote the yuan as a trusted -- and traded -- currency. The city has a thriving market, for example, for bonds denominated in yuan.
Mistrust of Beijing
Despite the close ties between the kissing cousins, more than 56% of Hong Kong residents have lost confidence in the "one country, two systems" arrangement that provides the basis for Beijing rule. As recently as 2007, nearly 80% of residents said they were confident in the deal struck between China and the U.K.
The issue drawing most attention at present is the procedure for selecting Hong Kong's chief executive. But there are other signs of fissure: Many Hong Kong residents are upset over rising property prices fueled by mainland buyers, and their consumption of social services.
If relations were to become even more strained, Hong Kong and China will pay a high price.