Hong Kong's political parties are now in decline after the return of the former British colony to China. The decline of political parties stands out in stark relief in a context featuring “Hong Kong people governing Hong Kong” and gradual democratization. A major reason for the decline is the stunted political party system of Hong Kong. Prominent in that stunted system is the absence of a ruling party. The stunted party system is primarily the result of Beijing's antipathy towards party politics in Hong Kong, which in turn discourages party formation by the Hong Kong government and the conservative elites. The lack of incentives for the business elites to organize political parties to protect their interests is another major reason. The stunted party system has produced serious adverse consequences for the governance of Hong Kong, representation of interests, public attitudes towards the political class and the further democratization of the territory.