Exclusive private education has, until now, been largely confined to top international schools. But the government is trying to offer parents fresh choices for their children, by creating a more vibrant local independent sector.
The Direct Subsidy Scheme (DSS) and Private Independent Schools (PIS) are the two key initiatives it has put in place to encourage more private investment - from school sponsoring bodies and the fees paid by parents - in education.
Some of Hong Kong's most famous schools, including St Paul's Convent Secondary School, Diocesan Boys School and St Paul's Co-Educational College, have either switched to the DSS, or will do so next year.
The DSS was started 12 years ago. Schools receive similar subsidies per student as aided schools, but they are free to charge fees, and have greater freedom over curricula, entrance requirements and management.
With greater freedom comes added risk if they fail to attract enough students. In the early days it was mainly financially-pressed private schools that used the scheme to tap public funds, but three years ago it was enhanced to entice leading aided schools to join.
This time schools have responded, often spurred but the desire to be free from what they see as new limitations in the aided sector. In particular, they want to select the best students for English medium education. Greater freedom in how they use their resources has also been a key factor for schools such as St Paul's Convent. By next year there will be 52 DSS schools. These range from famous elite and exciting new schools, to those more akin to normal local schools, which usually charge minimal fees.
For many local parents, DSS schools are an attractive alternative to international schools, with their greater emphasis on Chinese and stronger Chinese culture, even if English is the main medium of instruction. The downside is that there is already fierce competition for places in the top schools.