Special Administrative Region - SAR

AAA

DEFINITION of 'Special Administrative Region - SAR'

Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative Regions (SAR) of Hong Kong and Macau, which were formerly British and Portuguese colonies until 1997 and 1999 respectively, were set up in accordance with the "one country, two systems" concept proposed by Deng Xiaoping. The two SARs enjoy a great deal of autonomy, with responsibility for most areas of government - including executive, legislative and judicial - except for defense and diplomatic relations.

INVESTOPEDIA EXPLAINS 'Special Administrative Region - SAR'

The continued prosperity of Hong Kong and Macau under China is proof of the success of the SAR concept. Despite the vast differences in social systems and ideologies between the capitalist-based system of the SARs and the socialist system of China, the entire region has managed to maintain its rapid pace of economic growth, which ranks among the fastest-growing in the world.

VIDEO

Loading the player...
RELATED TERMS
  1. Hong Kong Stock Exchange (HKG) ...

    One of the world's largest securities markets by market capitalization, ...
  2. China Concepts Stock

    The stock of a company whose assets or earnings have significant ...
  3. China ETF

    Exchange-traded funds that invest in and track the equity stakes ...
  4. China Investment Corporation - ...

    A government-sponsored entity of the People's Republic of China ...
  5. Chinese Depositary Receipt - CDR

    A type of depositary receipt that is traded on Chinese stock ...
  6. Smart Traveler Enrollment Program

    A service of the U.S. Department of State that lets U.S. citizens ...
RELATED FAQS
  1. Is there a difference between the special administrative regions of Hong Kong and ...

    Hong Kong and Macau are the two areas of China formally designated as Special Administrative Regions (SARs) of the People's ... Read Full Answer >>
  2. What legal privileges do residents of special administrative regions (SAR) have that ...

    Special administrative regions (SARs) are autonomous territories that are within the sovereignty of the People's Republic ... Read Full Answer >>
  3. Are Chinese special administrative regions (SAR) special status permanent?

    Among the investing basics for people interested in investing in Asia is understanding that the status of the two Chinese ... Read Full Answer >>
  4. Does China have the equivalent of other special administrative regions (SAR) outside ...

    Hong Kong and Macau are the only two special administrative regions (SARs) of the People's Republic of China as of 2015. ... Read Full Answer >>
  5. What makes China's special administrative regions (SAR) so special?

    Under the constitutional principle of "one country, two systems," which Deng Xiaoping framed in the 1980s as part of a plan ... Read Full Answer >>
  6. How is the principle agent problem manifested in the government?

    The principal-agent problem describes challenges that occur when agents and principals have conflicting interests. Democratically ... Read Full Answer >>
Related Articles
  1. Markets

    How a Special Administrative Region Works

    A special administrative region is unique to The People’s Republic of China. These regions are created by the central government in China to allow certain areas to operate with a high degree ...
  2. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  3. Forex Education

    Why China's Currency Tangos With The USD

    Investopedia explains: It takes two to tango, but unless both partners move in perfect cohesion, a sequence of graceful maneuvers can be reduced to a series of clumsy moves. The latter depiction ...
  4. Forex Education

    The Hong Kong Dollar: What Every Forex Trader Needs To Know

    Find out everything you need to know about the eighth most traded currency in forex.
  5. Personal Finance

    Introduction To The Chinese Banking System

    As China steps into a greater role in the global economic system, their banking system continues to evolve.
  6. Investing

    Understanding Rare Earth Metals

    Rare earth metals are quickly becoming a sought-after global commodity. Find out what they are and how you can invest.
  7. Mutual Funds & ETFs

    Understanding BRIC Investments

    Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries.
  8. Entrepreneurship

    Top 6 Factors That Drive Investment In China

    FDI in China surpassed $100 billion in 2010, certain key factors drive foreign direct investment.
  9. Stock Analysis

    Why the House (and Las Vegas Sands) Always Wins

    An in depth look at how Las Vegas Sands became a multi-billion dollar company.
  10. Economics

    The Field So Far: US 2016 Presidential Candidates

    Over the past several months, there has been a lot of speculation as to who will make a run at the Republican and Democratic nominations.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center