The discussion of market in education is controversial and often value-laden. This paper aims at exploring the attempts made by the government of Hong Kong to develop a vibrant private sector in school education through the Direct Subsidy Scheme. The scheme allows participating schools to draw funds both from tuition fees and government subsidy on the one hand and promises greater freedom in school operation on the other. This paper will discuss how the scheme was first coined and its significant development. Attention will be paid to how the development of the scheme may have affected the landscape of school education in Hong Kong. Focus will be placed on how it may have an impact on equality of education, class, social mobility and the nature of education. It is hoped that this will become a case to help the reflections on the complexities relating to introducing market to education.
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