Hong Kong is a special administration region in Southern China enjoying a high degree of autonomy. Despite its high population density and unequal wealth distribution, infant mortality is low and life expectancy is highest in the world. The health service is however more hospital and clinic based than community-based. Primary care is largely private while over 70% of inpatient care is in public hospitals. This health infrastructure seems cost-effective. Professional standards are high and rigorously maintained. Doctors, nurses, pharmacists and other health professionals are well-remunerated even in the public sector. Drug registration follows American and European requirements. Hong Kong is part of the Pharmaceutical Inspection Co-operation Scheme, which brings with it a high standard of drug regulation. Hong Kong is a centre for clinical trials because the subjects are Chinese and protocols in English do not need to be translated. There are also two well-established clinical trials centres in university hospitals that also have a phase 1 clinical trials centre. The Hong Kong Hospital Authority is the largest customer of pharmaceuticals, and so to ensure appropriate use of drugs, there is a territory-wide drug formulary and guidelines for its hospitals and clinics, based on clinical need, and the efficacy, safety and cost-effectiveness of the drugs.