How are leases that expire before the establishment of the Hong Kong Special Administrative Region managed?

The management of leases that expire before the establishment of the Hong Kong Special Administrative Region is handled in accordance with existing laws and policies. This reflects the principle of continuity, where the legal framework and administrative practices in place before the establishment of the HKSAR remain effective until they are amended or replaced by the new government.

The approach underscores the importance of respecting the legal rights and obligations that existed prior to the handover from British administration to Chinese sovereignty. Thus, leases and other property agreements are treated within the context of the laws that were in effect prior to the establishment of the HKSAR on July 1, 1997.

This management ensures stability and predictability in property rights during a transitional period, allowing for a smoother adaptation to the new legal and administrative environment without abrupt disruptions. Such principles align with the Basic Law's provisions that protect private property and establish a legal framework compatible with the common law system previously in place. This context highlights how continuity in existing laws supports the stability and security of property rights, which is a fundamental aspect of the HKSAR governance model.