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She was just another gongzhu, or "Hong Kong pig," uninterested in things that did not involve her and too busy with her burgeoning music career to rock the boat by touching controversial issues.

Twenty years later, the 40-year-old Cantonese pop star and actress has been arrested by police, dropped by sponsors, blacklisted from China, and emerged as one of the city's leading LGBT activists.

"Fear is a contaminating disease," she told CNN. "I have this younger generation who listens to my music. So I think I have this responsibility to do the right thing, and not spread fear by my actions."

Ho's attitude began shifting in 2012, when she came out as gay at the fourth annual Hong Kong Pride Parade.

"It wasn't about gay marriage, nothing serious like that, just trying to do a public survey and it was blocked," she said.

"I was so angry back then, and that was the first time I saw how unfair the system is, how the government controlled everything."

"That was an enraging moment for me and for many other Hong Kong people," Ho said. "As a celebrity, as a public persona, as an adult, you have to speak out in support of these students and these other Hong Kong citizens."

Becoming more politically involved hasn't been without repercussions.

As Hong Kong prepares to mark 20 years of Chinese rule on July 1, Ho says this type of Chinese pressure and self-censorship is becoming more and more common.

"This is a very serious issue in Hong Kong because it's not only happening in the entertainment industry, it's happening everywhere," she said.

"We are losing our uniqueness and most of the bigger names are drifting towards the Chinese market."

"People are getting quite reluctant to claim themselves as Chinese because of what's happening with the Chinese government," Ho said.

Despite her fears for the future, Ho remains optimistic that Hong Kongers are becoming more aware of their freedoms and the city's unique identity.

"It's a difficult time but it's also an interesting time to be in Hong Kong right now because you are facing a lot of challenges but with challenges come chance," she said.

"This is a very special time when Hong Kong people can redefine ourselves,"Ho said.

CNN's Daisy Lee, Kristie Lu Stout and Angus Watson contributed reporting.

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How Denise Ho went from Cantopop queen to democracy fighter - CNN