The aim of this paper is to study the Hong Kong government's attempt to promote residualism and market principles in medical services through changing its fee and charge policy, strengthening the principle of selectivity at the expense of the universalist principle and proposing compulsory saving measures. It is argued that these reform measures are related to the government's mixed attitude towards medical services – that is, whilst providing medical services in response to political demands and the requirements of capitalism, the government wants to reduce the challenges these services pose to capitalism and its financial policy.