This paper addresses the extent to which government policy has helped increase the number and diversity of private secondary schools in Hong Kong, which, in turn, has expanded the options for parental choice. Five indicators were selected to measure this objective. They are as follows: (1) Number of private schools and students enrolled; (2) Types of private schools and their curriculum; (3) Number of aided schools joining the Direct Subsidy Scheme; (4) Number of government-built premises allocated to interested bodies to operate Direct Subsidy Scheme schools; and (5) Number of land grants and capital assistance loans to private independent schools. This paper also addresses several critical issues (efficiency, cost-effectiveness, accountability, and choice) that impact the government policy towards private schools in Hong Kong. The authors conclude that, although Hong Kong still has a long way to go in terms of increasing diversity and choice in the education system, government policy is heading in the right direction. A major challenge in the next decade involves the extent to which the government is able to resolve remaining issues that hinder the growth of the private school sector. (Contains 2 figures, 19 tables, and 3 notes.)