Hong Kong Special Administrative Region Chief Executive John Lee Ka-chiu called the city a living example of "certainties" amid murky geopolitical situations on Tuesday as the city marked the 28th anniversary of its return to the motherland.

Lee delivered a speech at a reception in the morning — part of a citywide celebration that featured free tram rides, museum visits and restaurant discounts.

In his speech, he lauded the city as a safe and stable land filled with opportunities, a stark contrast to the ever-shifting geopolitical landscape and rising uncertainties.

"We would rather be reformers who rise to challenges than become complacent idlers," he said, pledging to leverage the city's unique advantages under the "one country, two systems" principle to turn challenges into opportunities.

Lee highlighted significant achievements made over the past three years since he assumed office, noting that the SAR government has prioritized security, economic growth and social welfare, yielding tangible results.

Key accomplishments include enacting Article 23 legislation to strengthen national security, reducing public housing waiting periods by 9.5 months and recovering 8,700 misused public housing units.

Looking ahead, he outlined three major areas of focus for the SAR government: balancing security and development; accelerating the Northern Metropolis development; and improving livelihoods such as housing. He also pledged to better integrate the city into the overall development of the nation.

A flag-raising ceremony preceded the reception at the iconic Golden Bauhinia Square in Wan Chai — a symbol of the 1997 handover.

It was attended by senior officials, former chief executives Leung Chun-ying, Donald Tsang Yam-kuen and Carrie Lam Cheng Yuet-ngor, and community leaders.

Contributing to the festive atmosphere, the government and businesses rolled out special offers for residents, with more than 4,000 restaurants and shops offering deals such as 29 percent discounts on meals and items. The Hong Kong Retail Management Association also launched a shopping festival through August, with over HK$1.9 billion ($242 million) in discounts.

Other special offers include free rides on the MTR, ferries and trams.

Admission to the M+ Museum, the Hong Kong Palace Museum, the Science Museum, the Space Museum and public sports facilities was free on Tuesday.

By noon, all free admission slots for the Hong Kong Palace Museum had been fully booked, leaving Hong Kong-based European writer Nora Mankel disappointed after she arrived at the museum with her friend Sam Phillips. But the pair said the occasion inspired them to delve deeper into the significance of Hong Kong's handover.

"Suddenly, I'm researching why July 1 matters beyond just museum discounts," Phillips said, adding that they would return with pre-booked tickets.

At a carnival on Hong Kong Island's Western District, 9-year-old Ranomi Mouique Elijandy celebrated with her grandmother.

"We all know why we celebrate," said the ESF Kennedy School student, adding that the games helped her connect with the history of Hong Kong's return and share in the joyful atmosphere.

In congratulatory messages, officials, lawmakers and political parties hailed the "one country, two systems" principle as the foundation for the global financial hub's prosperity since the historic handover.

In a social media post, Chief Secretary for Administration Chan Kwok-ki attributed Hong Kong's ability to overcome difficulties during the interval to the enduring vitality of "one country, two systems", as well as the central government's unwavering commitment to safeguarding Hong Kong's prosperity and stability.

Political parties, including the Democratic Alliance for the Betterment and Progress of Hong Kong — the city's biggest political party — reaffirmed their support for deeper integration into national development and seizing new opportunities under "one country, two systems".

Sunny Tan, chairman of the Hong Kong Productivity Council, pledged to leverage Hong Kong's global connectivity to strengthen industry ties through international fashion events, strengthen the city's brand and support internationalization efforts.

Huang Yawen contributed to this story.