Chief Executive John Lee announced on Monday that Beijing is to send two pandas to Hong Kong as gifts, as he led top officials and political heavyweights in attending activities marking the 27th anniversary of SAR Establishment Day.

At 8am, the CE and more than a hundred guests attended the flag-raising ceremony at Golden Bauhinia Square in Wan Chai.

Among those in attendance were the director of Beijing's Liaison Office in Hong Kong, Zheng Yanxiong, former Chief Executives Donald Tsang, CY Leung and Carrie Lam, as well as Chief Justice Andrew Cheung.

As the national and SAR flags were being raised, the guests all stood solemnly facing them while the national anthem was being played.

Disciplined forces, such as the Government Flying Service and Fire Services Department, gave their salute at Victoria Harbour.

After the brief ceremony outdoors, the guests headed to a reception inside the Convention and Exhibition Centre next door.

During the reception speech, the CE announced that Beijing will be sending two pandas to Hong Kong, with the pair being the fifth and sixth pandas to live in Ocean Park.

"I sincerely thank the central government's care and support for the SAR," he said.

"The officials took up my proposal to send the pandas to Hong Kong as gifts. We are immediately starting preparations to receive them in a few months, and they'll bring us joy."

Lee said this is just the first of many good news to come for Hong Kong.

The Chief Executive also spoke about the work of the SAR government over the past year, including enacting homegrown national security legislation under Article 23 of the Basic Law, as well as attracting more skilled workers to come to Hong Kong.