Hong Kong’s expanding export-import trade and importance as a capital market have made it one of the major economic centers of Asia, second only to Tokyo. Consequently, the reversion of this previously capitalist city to the People’s Republic of China ten years from now will have serious ramifications for the Western financial world. There is much speculation concerning the impact of communist control of the three principal factors which have contributed to Hong Kong’s current standing: its political and social stability, economic reform, and the British legal system.