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China's national flag and the flag of the Hong Kong Special Administrative Region (HKSAR) were hoisted and the national anthem was played at a ceremony at the Golden Bauhinia Square in Hong Kong Island at about 8:00 a.m. local time Wednesday in celebration of the anniversary.

In rectifying wrongdoings in the financial sector, the draft toughens the penalties for the crime of "illegally taking in deposits from the general public," a form of illegal fundraising, extending its maximum term of sentence from 10 years to 15 years. The draft also outlaws violence-related debt-collecting activities and jobs.

Wang called on legal scholars and workers to play active roles in promoting the effective implementation of the law and resolutely safeguard national security as well as the lasting peace and stability in Hong Kong.

Ho added that the law plugged loopholes in the HKSAR's legal system and enforcement mechanisms for safeguarding national security. By drawing a clear bottom line of national security, the law will act as a powerful deterrent against crimes endangering national security, he added.

The law on safeguarding national security in Hong Kong will play a crucial role in improving the situation of Hong Kong, Lo said.