Discrimination against ethnic minorities could hamper Hong Kong's drive to become a world-class city, people interviewed in a survey believe.
A poll of 83 people covering several ethnic groups also revealed that discrimination is prevalent in almost every section of society - even in government departments.
The study by the Society for Community Organisations (Soco), carried out over the past five months, spoke to Africans, Nepalese, Indians, Pakistanis, Sri Lankans, Filipinos and Indonesians in Hong Kong.
Soco's director, Ho Hei-wah, attributed racism to increasing feelings of Chinese ethnicity since the handover and a lack of laws to tackle racial discrimination.
The survey found racial bias existed in employment, accommodation, shopping and restaurants. It also found the minority groups felt there was discrimination in their dealings with law-enforcement officers and at hospitals.
Mr Ho warned that if the trend was allowed to continue, the SAR could drop its dream of becoming a world-class city, as proposed by Chief Executive Tung Chee-hwa.