Chinese President Hu Jintao is expected to face fresh calls for democracy in Hong Kong, as the former British colony marks the 10th anniversary of its return to Chinese rule.
Security was heavy Friday as Mr. Hu arrived in Hong Kong for his first visit to the territory since becoming China's leader.
The president attended Saturday's unveiling of the public display of two pandas, which Beijing gave to Hong Kong as a gift to mark the anniversary
Earlier Saturday, he inspected the People's Liberation Army Garrison, and made home visits to families in Hong Kong.
Mr. Hu will attend Sunday's handover anniversary, but is expected to return to Beijing before an annual pro-democracy march begins.
Hong Kong operates under a "one country, two systems" policy, and enjoys greater political and social freedoms than in mainland China.
Demands for universal suffrage have cooled in recent years. In 2003, more than 500,000 demonstrators protested during the anniversary of the handover to China, but the size has dwindled in the past few years.
Hong Kong residents cannot directly elect their leader and half of the legislature. China has not said when it will grant such freedoms.
Hong Kong's first decade under Chinese rule has been marked by several rocky incidents, including the Asian financial crisis that began just after the July first handover in 1997, as well as the 2003 outbreak of SARS (Severe Acute Respiratory Syndrome) which hurt the city's vibrant tourist industry.