Let's Time Travel to 20th Century Hong Kong!
Hi everyone! Get ready to jump into our time machine! We're going back to the 20th Century (that's the 1900s) to see how Hong Kong grew from a small place into the amazing, busy city we know today. It’s like discovering the secret origin story of a superhero!
In this chapter, we'll learn about the three super-powered jobs that made Hong Kong strong and famous:
- Entrepot Trade (Being a super-connector for goods)
- Industry (Making cool things that everyone wanted)
- Finance (Becoming an expert at managing money)
Learning this helps us understand why our city looks and feels the way it does today. Let's go!
Hong Kong: The Super Connector! (Entrepot Trade)
Imagine you have a cool sticker that your friend in another classroom wants. You can't go there yourself, so you give it to a classmate who sits near the door. Your classmate passes the sticker to your friend. In this story, your classmate is the helpful 'middle-man'!
In the 20th Century, Hong Kong became a super famous 'middle-man' for the whole world. This is called entrepot trade.
What is Entrepot Trade?
Entrepot trade is when goods from one country are brought to a place (like Hong Kong) and then sent to another country. Hong Kong didn't make the goods, but it helped them get from the seller to the buyer.
Example: Big ships would bring toys and silk from China to Hong Kong. Then, smaller ships would take those goods from Hong Kong to places like America or Europe.
Why Was Hong Kong a Great Entrepot?
- A Perfect Harbour: Victoria Harbour is very deep and wide. This makes it a super safe parking spot for even the biggest ships in the world!
- A Great Location: Look at a map! Hong Kong is perfectly placed right on the edge of China and along the busy sea routes. It was the perfect doorway between China and the rest of the world.
- An Easy Place to Do Business: Hong Kong had simple rules and low taxes for ships bringing goods. This made it cheaper and faster for everyone to trade here.
Did you know?
For a long time, Hong Kong was one of the busiest ports in the entire world! Imagine thousands of ships coming and going every single day, like a giant highway on the sea.
Key Takeaway
Hong Kong's first big step was becoming a world-class 'middle-man' for goods. This is called entrepot trade, and it helped Hong Kong start to grow.
From Trading to Making: Hong Kong's Factories
After being a super connector, Hong Kong learned a new skill: making things! Lots of talented people came to Hong Kong and started factories. The city became a super maker, and the words "Made in Hong Kong" were seen all over the world.
Light Industry: Hong Kong's Superpower!
Light industry means making smaller products that we use in our daily lives. Think of things you can easily carry! Hong Kong was a champion at light industry.
Analogy: Think about cooking. Light industry is like baking cookies in your kitchen – you don't need giant, heavy machines. Heavy industry is like building a car – you need a huge factory and very heavy equipment.
What did Hong Kong's light industry make?
- Plastic Flowers: Hong Kong was once known as the "Plastic Flower King" of the world!
- Toys: Many of the toys your parents or grandparents played with were made here.
- Clothes and Textiles: Making shirts, trousers, and fabrics.
- Watches and Radios: Simple electronics were a very big business.
Heavy Industry: The Big Stuff
Hong Kong also had some heavy industry, which is about making very large things. The most important one was shipbuilding and repair. Because Hong Kong was such a busy port, there were always big ships that needed to be fixed or even built from scratch!
Quick Review!
Don't worry if this seems like a lot. Just remember:
- Light Industry = Making smaller things (like toys and clothes). Hong Kong was a world expert at this!
- Heavy Industry = Making giant things (like ships). Hong Kong did this too, but was more famous for light industry.
Key Takeaway
Hong Kong didn't just help trade goods, it started making its own! Being a "Super Maker" of clothes, toys, and plastic flowers created many jobs and made Hong Kong even more successful.
Handling the Money: Hong Kong Becomes a Financial Centre
With all the money coming from trading (entrepot) and making things (industry), Hong Kong needed a safe and smart way to manage it all. So, Hong Kong learned its third new skill: it became a world-class money manager, also known as a financial centre.
What is Finance?
Finance is just a big word for everything to do with managing money. Don't worry, it's simpler than it sounds!
Analogy: Think about your Octopus card. You put money in, you use it to buy things, and you can check how much is left. Finance is like that, but for the whole city, with banks and big companies.
What Does a Financial Centre Do?
A financial centre is a city with lots of expert businesses that help people and other businesses with their money. The most important ones are:
- Banks: Super safe places to keep money. They also lend money to people who want to start new factories or shops.
- The Stock Market: A place where you can buy a tiny, tiny piece of a big company (like Disney or MTR). If the company does well, the value of your tiny piece goes up!
- Insurance Companies: These companies help protect you. You pay them a small amount of money regularly, and if something unexpected happens (like you get sick), they help you pay the bills.
Common Mistake Alert!
Some people think finance is just about counting money. But it's much more! It's about helping money move and grow, so that new businesses can start and more jobs can be created.
Key Takeaway
Because Hong Kong was so good at trade and industry, it became an expert in managing money. This made it a top financial centre in the world, helping people and companies from everywhere.