Journalists' representatives say self-censorship is 'no worse' a year after the handover.
However, they say fears about reporting on the independence of Tibet, Taiwan or Xinjiang are on the rise.
In its annual report on press freedom entitled 'Questionable Beginnings', the Hong Kong Journalists' Association said the SAR and mainland authorities had shown more restraint than expected.
'We have to admit that none of the worst-case scenarios materialised and that is good. No newspaper has been closed down because of political incorrectness,' said association vice-chairman Liu Kin-ming.
The report tempered its praise by adding that Beijing had had no reason to interfere given its confidence in the SAR authorities, the rolling back of democratic representation and plans for new legislation prohibiting treason, sedition, subversion and secession.