While the People's Republic of China follows a civil law system, Hong Kong's legal system is based on the traditions of its former colonial master (common law), down to the robes and curly white wigs. As in the British system, lawyers are either solicitors (handling paperwork, negotiations, and settlements) or barristers (who can appear in court). The Basic Law functions as Hong Kong's constitution, subject to interpretation by the Standing Committee of the National People's Congress.

Basic Law ensures Hong Kong's autonomy in its executive, legislative, and judicial systems, as well as certain foreign relations. It protects freedom of expression, assembly, and religion, forbids torture and unwarranted searches, seizures, and arrest. Furthermore, Hong Kong is ardently capitalist, in spite of Mainland China's (nominal) adherence to socialism. Hong Kong's election system is rather complicated, with a small group of electors chosen from various segments of society selecting the Chief Executive. Local district council and S.A.R.-wide Legislative Council elections allow for more direct participation.

All residents have equal opportunities to obtain housing, employment, and education. However, only permanent residents of Hong Kong may participate fully in elections or be elected to public office.