HONG KONG—Hong Kong’s red flag was raised into sky Sunday as the former British colony marked the 10th anniversary of its handover to China and bid farewell to a rocky decade of financial woes (灾难，忧患), disease outbreaks and economic recovery. A few hundred people stood near Hong Kong’s harbor to watch the ceremony attended by dignitaries (显贵人物). The crowd erupted with cheers when four helicopters carrying flags of China and Hong Kong Special Administrative Region flew over the area. "We’re here to celebrate Hong Kong’s birthday," said 12-year-old Jenny Kwok. Since Hong Kong returned to China, the city has been governed under a "One Country, Two Systems" formula. The arrangement has allowed the territory to keep its capitalist economy, British-style legal system, free press and civil liberties, and Beijing has honored its promise to let Hong Kong enjoy a wide-degree of autonomy.

Since Hong Kong returned to China, the city ______.