Going out with a bang at the Royal Yacht Club

Hong Kong Parties the Night Away

One of the most exclusive was at the Royal Hong Kong Yacht Club, a traditional hang-out for the well-heeled.

Another bash to be seen at was the Regent Hotel's party, where more than 2,500 guests listened to reggae music, and revelled in Britain's imperial past. But as the clock struck midnight, the party changed to a Chinese theme.

Never too late to party

For those on a budget, there were plenty of free events, not least the spectacular fireworks. Restaurants, bars and shops that stayed open late all did brisk business

In Hong Kong's nightlife entertainment district of Lan Kwai Fong even heavy rain could not stop the party.

Thousands of revellers crowded into the narrow but well-policed streets of The Fong.

Flags, particularly of China and Britain, are very much a part of the dress code of anybody who is anybody, although some go further and wear and carry large flags.

Bernard Neal, 50, originally from Herne Bay in Kent, has been interviewed by several TV crews in the course of the evening for waving a large Chinese flag while wearing a T-shirt that reads: "Free Tibet Now" in both English and Chinese characters.

"I'm really pleased that Hong Kong is going back to the Chinese people," said Neil, who adds that the Government is irrelevant.

A new era explodes into life

He says he has worn his T-shirt for irony and to get people to think about the issue of Tibet. "You get them to agree what a disgusting thing the takeover of Hong Kong was in the first place: then you raise Tibet," he said.

Hong Kong's Filipino community - which provided many of the former colony's "amahs" or maids - put on a free two-day carnival with concerts and dancing.

Mixed Reactions in London's Chinatown

Meanwhile in London, hundreds of people crowded into the centre of Chinatown to mark the handover of Hong Kong to China.

There were some cheers as TVs showed the Union Jack pulled down for the last time over the small island to be replaced by the Chinese flag.

Among the crowd were waiters and restaurant staff from the busy commercial centre in the heart of London and expatriates, young people who had been born and brought up in Hong Kong.

Young student Kate Poulsson said: "I don't have a very optimistic view about the whole handover. Hong Kong is my home and now that's all changed. I'm never likely to go back. I fear for the security of the island. I really don't want to see another Tiananmen Square."

Jie Zhang, 35, from the West End of London, said: "I think it will be OK. The handover will be good for the Chinese economy. Many people, me included, will be looking to see what happens but China will be the focus of world attention, it can't afford to do anything wrong."