Thousands of people have lined the streets of Sydney to see the Chinese

year of the dragon ushered in with a colourful parade, hailed as the city's biggest and best ever.

Around 1,500 people took part in the parade, led by a 30m-long red and gold dragon which

was brought to life by 40 performers.

Among the 39 groups taking part in the parade from Town Hall to Hay Street were Chinese

community groups, a New South Wales Police marching band, Scouts and Girl Guides and a

range of sports clubs.

King Fong, chairman of Sydney's Chinese New Year festival committee, said it was an exciting

event to be part of.

Mr Fong said this year was the year of the golden dragon, which only takes place every 60

years - an especially good omen for Sydney in its Olympic year.

Sydney's Chinese new year celebrations, which have been held in the city for 30 years and

supported by City of Sydney for the last four, are reputedly the biggest outside China.

The festival, now in its second weekend, draws to close with dragon boat racing at Darling

Harbour next Saturday and Sunday.