Hong Kong marked the 29th anniversary of its return to China with a series of tightly choreographed events on Wednesday and Thursday, combining traditional flag-raising ceremonies with the maiden port call of two Chinese People's Liberation Army (PLA) Navy vessels. Senior Hong Kong officials joined representatives from Beijing’s liaison organs and the PLA in a display that underscored both the political and defense dimensions of the relationship between the Hong Kong Special Administrative Region and the central government.

The commemorations began early on Wednesday at Golden Bauhinia Square in Wan Chai, where the national flag of the People’s Republic of China and the Hong Kong SAR flag were raised at 8 a.m. A flag-guarding team marched in step to "Ode to the Motherland" as helicopters from the Government Flying Service flew past Victoria Harbour and a firefighting vessel delivered a water salute. Chief Executive John Lee and his wife attended alongside senior officials, Executive Council members, and former chief executives including Leung Chun-ying, Donald Tsang and Carrie Lam. Parallel flag-raising ceremonies were held at the Office of the Commissioner of the Chinese Foreign Ministry in Hong Kong and at Beijing’s liaison office in the city.

Following the ceremony, the Hong Kong government hosted a reception at the Hong Kong Convention and Exhibition Center. Guests heard from Lai Ka-ying, Hong Kong’s first astronaut, who addressed the gathering via video link from China’s Tiangong space station. Lai highlighted the symbolic significance of displaying the HKSAR flag on the orbital outpost, linking the anniversary to China’s broader space ambitions and underlining Hong Kong’s role within that narrative.

The political program was complemented on Thursday by the arrival of a PLA Navy fleet to mark the anniversary. The guided-missile destroyer Nanning and guided-missile frigate Hengyang, accompanied by ship-borne helicopters and marines, sailed into Hong Kong waters in column formation at around 7 a.m. local time, escorted by vessels from the HKSAR government fleet and the PLA Hong Kong Garrison. After mooring at the PLA Hong Kong Garrison’s naval base on Stonecutters Island at around 10 a.m., senior officers, crew representatives and Hong Kong officials took part in a welcome ceremony that began with the national anthem and a speech by Chief Executive Lee.

This visit is the first to Hong Kong for both Nanning and Hengyang and forms part of a five-day program of open-house and cultural exchange activities tied to the anniversary. The two ships will be open from Friday through Sunday to residents and students from Hong Kong and Macao, offering the public what authorities describe as first-hand exposure to advances in China’s national defense and military modernization. The combination of ceremonial symbolism at Golden Bauhinia Square and high-profile naval diplomacy in Victoria Harbour framed this year’s Establishment Day as both a commemoration of the 1997 handover and a showcase of Beijing’s evolving presence in the city.

Sa Sa International Holdings Ltd. is ramping up store openings and restoring a full dividend payout after a sharp rebound in profit, underscoring management’s confidence in the recovery of Hong Kong and Macau’s beauty retail market. The cosmetics chain’s full-year sales rose 14.2% to HK$4.383 billion, while profit increased 1.6 times from a year earlier, allowing the group to boost its final dividend and return its payout ratio to 100%. Chairman and chief executive Simon Kwok said the stronger distribution reflects a “very strong” outlook, pointing to broad-based improvement in store traffic and spending.

Kwok said all key operating indicators in Hong Kong and Macau — including revenue, same-store sales, transaction volume, average ticket size and units per transaction — recorded year-on-year gains in the last financial year. Momentum has continued into the new year: in the first quarter of the current financial year, total revenue grew 24%, with offline sales up 30.9%. Hong Kong and Macau led with a 32.5% jump in offline sales, while Southeast Asia rose 17%. Online revenue slipped 3.2% overall, weighed by an 18.1% decline in mainland China, even as Hong Kong, Macau and Southeast Asia posted online growth.

On the back of the recovery, Sa Sa is reviving its brick‑and‑mortar expansion, particularly in tourist districts that were heavily rationalised during the downturn. The company plans to open 10 new stores in the current financial year; it has already added outlets in Mong Kok and Tsim Sha Tsui, including a large upstairs shop of about 6,000 to 7,000 square feet at the Mong Kok Man Wah Centre, on top of an existing ground‑floor unit. A store at the Airside mall in Kai Tak is slated to open in August, and another at Lok Ma Chau is planned to capture cross‑border traffic. Kwok said tourist‑area stores are now about half the number they once were, leaving “substantial room” to rebuild the network, though he stressed the group will not neglect local customers.

Store format will be a key part of the strategy. Kwok said he and his wife favour large outlets and that she has advocated opening flagship stores to serve both mainland and local shoppers in a more spacious, comfortable environment. Still, decisions between large and small formats will depend on rents and operating costs; smaller shops require less staff and investment. He said that while the opening of new outlets may “slightly” dilute same‑store sales metrics, the impact should be limited as long as locations and rental terms are carefully chosen. Footfall remains the main focus: “Only when there are people will there be revenue,” he said, adding that broader product assortment and competitive pricing should help underpin demand even as more drugstore and beauty chains enter the market.

Sa Sa also aims to stabilise and eventually grow its Southeast Asian operations, where the group ended the last financial year with 75 stores — 70 in Malaysia and five in Singapore. The region’s near‑term target is to achieve break‑even. Three of the five Singapore stores are already profitable, and Kwok said the company would consider opening more outlets there if suitable opportunities arise, noting that Singaporean sales growth was particularly strong in the second half of the year. The Malaysian business is described as stable, with management planning tighter cost control. Kwok played down concerns about competition from other travel destinations and cross‑border consumption trends, saying that Hong Kong remains convenient for many mainland visitors, some of whom come once or twice a month, and that the company’s breadth of products and pricing remain competitive.