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 Investment Corporation - ...

    A government-sponsored entity of the People's Republic of China ...
  4. China ETF

    Exchange-traded funds that invest in and track the equity stakes ...
  5. Chinese Depositary Receipt - CDR

    A type of depositary receipt that is traded on Chinese stock ...
  6. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  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 >>
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. Economics

    Venezuela Teeters On Edge As Oil Revenues Shrink

    Low oil prices have drastically revised the economic status quo -- dealing a destabilizing blow to oil-exporters like Venezuela due to falling oil revenue.
  10. Economics

    What Must The UK Do To Keep North Sea Oil Afloat?

    The UK government may need to take drastic action to ensure the viability of UK North Sea offshore oil production amid high costs and shrinking margins.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center