The Japanese occupation of Hong Kong began in December 1941, shortly after the attack on Pearl Harbor, as part of Japan's broader campaign to secure territory in the Pacific. The British colony fell swiftly under Japanese control, leading to a harsh regime characterized by food shortages, brutal treatment of civilians, and significant disruption of daily life. Throughout this period, the local population faced dire economic conditions and restrictions, with many residents suffering from malnutrition and illness. Various resistance movements emerged, albeit with limited success against the occupying forces.

With Japan's surrender in August 1945, following the dropping of atomic bombs on Hiroshima and Nagasaki, the Allied forces were finally set to liberate occupied territories. In Hong Kong, British officials secured the surrender of Japanese troops, leading to the formal reoccupation of the territory. Captain K. D. O. H. Deighton represented the British, overseeing the return of control and the re-establishment of civil governance. The ceremony was symbolic, featuring the lowering of the Japanese flag and the raising of the British flag, a significant moment that marked the transition from occupation to restored sovereignty.

The re-establishing of British rule initiated a complex process of recovery and rebuilding for Hong Kong, as the city faced the significant challenges of post-war reconstruction amidst a rapidly changing geopolitical landscape. The return of British administration brought with it various initiatives aimed at restoring economic stability and addressing the needs of the war-affected population. The post-war period also set the stage for Hong Kong’s eventual evolution as a global financial hub, influenced by both British governance and the impending socio-political changes in Asia.