You can’t keep a good town down.

Hong Kong has had a rough ride since June 30, 1997, when the British handed the keys back to the People’s Republic of China. But through it all, the city has displayed its customary resilience and good humor. With the economy rapidly picking up speed, in recent months Hong Kong has reemerged as a thoroughly attractive business destination.

It hasn’t been easy. The Asian financial crisis that began around the time of the handover started a deflationary spiral that lasted until the middle of this year, while the SARS epidemic of 2002-2003 scared away visitors by the thousands. A lot of businesses went under.

Another problem has been-and remains-a low level of confidence in the government of Chief Executive Tung Chee Hwa. Widely perceived as ineffectual and overly compliant with Beijing, the administration is also deeply unpopular because of its opposition to a broad-based demand for democratic reforms.

The good news is that the economy is once again growing at a healthy rate, SARS has not returned, and the government has stuck to the laissez-faire principles observed by the former colonial masters (at least so far as business is concerned).

The city remains law-abiding and, by international standards, unusually safe for visitors. Large-scale, pro-democracy demonstrations, including one that may have involved as many as half a million people, have been peaceful and orderly.

According to the 2004 Index of Economic Freedom Report, issued by the Heritage Foundation and The Wall Street Journal, Hong Kong is the world’s freest economy, and has been for the last ten consecutive years. It’s also one of the easiest cities in the world in which to do business, and it’s right on the doorstep of China, with its market of 1.3 billion people.

There used to be a great rivalry between Hong Kong and Singapore, but nowadays the city is much more frequently compared to Shanghai, and some business has indeed relocated further north. It’s worth noting, however, that a lot of the investment and initiatives that have made Shanghai the Chinese Mainland’s most attractive city for the business visitor came from Hong Kong.

As a gateway to China, the former Crown Colony retains many advantages, thanks to the “One Country, Two Systems” formula on which it now operates as a part of the Motherland. In Hong Kong, English is still the first language of business, taxation is attractively low, laws and accounting regulations governing companies are clearly formulated and easily comprehensible, and people are accustomed to hard work and long hours.

Add to that Hong Kong’s sheer vitality-you can feel that famous buzz the moment you land at the airport-world-beating service standards in some of the best hotels on the planet, a vibrant dining scene and other leisure options aplenty, and it’s not hard to see why the city always manages to stay in the game during hard times-and comes back strongly when it has seen them off. This is a great time to visit.

Inside the Hong Kong Guide

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