Hong Kong that has long favored a laissez-faire economic policy is now ready to establish an antitrust authority. The independent committee will oversee compliance with the fair-competition rules.

The government is taking measures to address what is seen by many as connivance with big business that has connections with the Hong Kong officials.

"The government is showing signs of relenting," said Ronny Tong, a renowned local lawmaker.

Many sectors of the HK market such as retailing or utilities are dominated by a few large conglomerates. For example, Kadoorie family’s CLP Holdings Ltd., and Hongkong Electric, part of Li Ka-shing’s Cheung Kong and Hutchison Whampoa groups control electric power.

"There are several domestic service sectors where one firm, or a handful of firms, dominate market share," the U.S. Trade Representative office said in a 2005 report.

The deficiency of Hong Kong regulation was exemplified in the Banyan Garden when residents of the properties belonging to a firm owned by Mr. Li were charged by Hutchison Global Communications Holdings Inc. that also belonged to Mr. Li.

EU, US and other international partners of Hong Kong also support the introduction of an authority that would oversee competition practices.