The period between 1842 and 1860 was a significant one in the history of Hong Kong. During this time, the island underwent a series of changes, both political and social, that would shape its future as a global city. From the aftermath of the First Opium War to the boom in the economy following the Second Opium War, Hong Kong experienced a period of growth and development that would lay the foundation for its rise as a major financial center in Asia.

Starting in the 19th century, the British greatly relied on opium businesses in exchange for silver in order to pay for silk and tea, but they soon felt unsettled due to the diminishing gains from the strict restrictions of foreign trades imposed by the Qing Emperor. Rage even flared up in them after their right to trade in China was banned and tons of opium were destroyed by imperial commissioner Lin Zexu (林則徐), as the number of addicts alarmingly soared in China. With no surprise, the outbreak of war became inevitable when the Royal Navy was sent, and invaded Guangzhou.

The First Opium War, which took place from 1839 to 1842, was a turning point in the history of Hong Kong. After the British attacked Chinese ports, including Canton, Hong Kong Island was unofficially ceded to Great Britain when the Union Jack was waving in the air at Possession Point (now in Sheung Wan) on January 25, 1841. Ultimately, the Chinese government signed the Treaty of Nanking in 1842, which ceded Hong Kong Island to the British in perpetually as part of the war indemnity. It was the first ever unequal treaty that triggered Qing’s sense of shame and humiliation.

Despite the hopes of the British to build a thriving trade center on the island, the early years of British rule were fraught with challenges. The Treaty of Nanking did not make Hong Kong's port exclusive, forcing China to open up five ports for trade. This led to a surge in piracy and crime, as well as a growing mistrust between locals and Europeans. The colonial government did little to address these issues, leaving many businesses hesitant to invest in the island.

However, the situation began to change in the 1850s. The Taiping Rebellion, a massive civil war in China that lasted from 1850 to 1864, forced many Chinese refugees to flee to Hong Kong. This influx of people brought with them new skills and resources, helping to fuel the growth of the island's economy. Additionally, the Second Opium War, which took place from 1856 to 1860, resulted in the British being granted various privileges from the Treaty of Tientsin after China's defeat. These privileges further boosted Hong Kong's economy.

The economy of Hong Kong started booming from the late 1850s and onwards, thanks in part to the migrants who had come to the island for work. Many of these migrants went on to work overseas, fulfilling the British desire for the island to become a hub for global commerce. Despite its rocky start, Hong Kong had proven itself to be a resilient colony, capable of overcoming obstacles and adapting to changing circumstances.