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

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. No results found.
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

    Global Rivals Locking Horns In Ukrainian War

    Huge power games which are being played behind the Ukrainian conflict are rooted in a previous revolution, a past Cold War, and an old Russia-West rivalry.
  10. Economics

    Does A Junk Rating Reflect Russia's Fundamentals?

    Moody’s, like other credit rating agencies, has downgraded Russia’s sovereign debt rating to non-investment grade, but does this reflect Russia's economy?

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center