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Hong Kong is one of the fastest growing economies in the world. It is also one the four Asian Tigers. Aim of this paper is to find out how Hong Kong’s “positive non-intervention” policy and rules-based approach applied in the practice and how it helps Hong Kong achieve enormously success. The factors account for the success of Hong Kong economy are that openness and freedom from foreign exchange rate and fiscal policy, reasonable economic policies, and non-interventional approaches to economic policymaking, and high trade volume. Even though government plays a minor role during the structural transformation and economic growth, it does not mean that government’s role is not important. In fact, government’s approaches help Hong Kong succeed in many ways. The first part of the essay will review brief background when Hong Kong was under British governance in 1950s and 1990s. Second part of this paper will investigate the rise of manufacturing in Hong Kong and during 1950s and 1960s. Third part of this paper will focus on the change in type of manufacturing during 1970s. Fourth part of this paper will examine the rise of financial sector in Hong Kong during 1980s to 1990s. In each of the periods, government’s impact on the economy will also be discussed. Hong Kong’s economy miracle between 1950s and 1990s is an excellent economic model to learn from for the rest of the world. Hong Kong government’s hands-off approach would also give guidance of economic development for other countries.

Brief Background of Hong Kong
Hong Kong is often considered a place where integrates the essence of both Chinese and western elements. Hong Kong’s unique characteristic was a result of colonial rule and economic development goes hand in hand. British occupied Hong Kong after Qin dynasty lost the Opium War in 1842, and later British used Hong Kong as a trade port to