Nevertheless, control of the territory will be in the hands of Beijing. An exciting future is presently clouded by misunderstandings between the Governor and the Chinese government. Hong Kong will become a Chinese city. The Eastern provinces boom. Some Western areas are left behind.
Corruption is widespread.
Deng is doing now what he attempted in the 1950's. Prominent Hong Kong families are under some pressure to invest in China. No confiscation of assets is to be foreseen, but Hong Kong may suffer some form of exchange control and increased taxation. A VAT or sales tax would not be acceptable. An income or dividend tax is being talked about.