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.

New World Development Co. and Ares Management Corp. have sharply cut asking prices for units at their grade-A office project in Hong Kong’s Cheung Sha Wan district, in one of the deepest discounts seen in the city’s commercial property market. According to people familiar with the matter and local media reports, prices at 83 Wing Hong Street have been reduced by as much as 57% from levels when the project first launched sales in 2024, with some units now offered below the developer’s original land cost.

After factoring in discounts and rebates, certain floors at the 28-storey tower are being marketed at about HK$5,600 per square foot, with other units around HK$7,000 per square foot, the people said. That compares with initial asking prices of roughly HK$13,000 per square foot at the start of the year and is lower than the about HK$7,996 to HK$8,000 per square foot New World paid for the site in 2017. The aggressive pricing underscores the pressure facing owners of commercial assets outside Hong Kong’s core business districts, even as sentiment in the broader property market has started to improve.

The building, completed in 2023 and branded “83 Wing Hong Street,” is located near Lai Chi Kok MTR station in Kowloon, about a five-minute walk from the railway and around a 20-minute train ride from Central. It comprises office space from the fifth floor upward, with a total gross floor area of roughly 440,000 square feet and includes both office and retail components. While the steep reductions have helped lift transaction momentum in recent weeks, they also highlight how landlords in non-core locations are having to adjust expectations to clear inventory.

Hong Kong’s office sector remains weighed down by high vacancies, particularly outside the traditional Central business district. Data from CBRE show the citywide office vacancy rate stood at 16.8% at the end of March, close to a historic high, amid a wave of new completions. That contrasts with signs of a broader recovery in the residential segment, leaving some investors reassessing exposure to commercial assets. Ares declined to comment on the pricing moves, while New World did not respond to requests for comment, according to earlier reports.