HONG Kong's last assisted private school, which becomes directly subsidised in September, received 60 per cent more applications than mthere were places, which came as a pleasant surprise to the school's administration. The good response allayed fears that schools withdrawing from the Government's Central Allocation System to join the Direct Subsidy Scheme (DSS) would have difficulty recruiting enough students. Under the allocation system, school places are filled by the Government, while under the DSS schools have to do their own recruiting. Kiangsu-Chekiang College has been under the Central Allocation System since it was founded 35 years ago. Up to now, all Form 1 students have been chosen by the Government. But now, having joined the DSS this year, the school is free to choose its own students, decide on its school fees and hire its own staff on a lump sum subsidy from the Education Department. The department will offer only minimal supervision. Principal Cheung Shiu-yip said the Education Department had not informed him yet how much the subsidy for the 1993-94 academic year would be, but believed it would be around $14,000. The school received over 720 applications, of which over 440 were shortlisted for the school's 11 Form 1 classes this September. The school fee is fixed at $1,000 per annum. ''Like other schools, we were at first worried we wouldn't be able to fill all the places,'' Mr Cheung said. ''We had a range of eight to 11 classes, so that if we fell short we could cut the classes.'' But as it turned out, there was an excess of almost 300 applications. Students were selected according to academic achievement, conduct record and family background. Both students and their parents were interviewed. Mr Cheung, who declined to comment on the students' academic levels, emphasised the excellent conduct record of the new batch of students. ''Academic performance is important, but we are also looking for well-behaved students. Good behaviour is a necessary part of the learning process,'' the principal said. Kiangsu-Chekiang College employed a public relations company for its recruitment promotion, the first time a Hong Kong school has ever done so. ''We've been an assisted private school all along, and joining the DSS is a turning point. We had to make a public announcement that the school was undergoing a big change, and we felt a PR firm could help us,'' Mr Cheung said. The principal hoped that by joining the DSS the school's academic standard would be raised. ''We proved that a DSS school can recruit students if it had sound educational goals and gave parents confidence,'' he said.