The Competition Policy Review Committee, set up in June last year to review the current policy's effectiveness, recommended such a public consultation exercise.

The committee's Chairman Christopher Cheng highlighted key issues that the group had considered. It recommended a new, cross-sector competition law and a regulatory body to enforce it.

The group was also aware that a proposal to introduce a new general competition law into Hong Kong might raise concerns, particularly in the business community, he said.

"The objective of any new law should not be to interfere the markets, or to affect normal business operations," Mr Cheng explained, continuing:

"It should aim to enhance the local business environment by providing a clear set of guidelines on appropriate standards of market discipline that would not discriminate against any firm, big or small."

The three-month consultation excercise will end in early February.

Speaking on the matter earlier this month, Mr Tang stated that high priority should be given to ensuring Hong Kong's competition policy is modern, serves the public interest and facilitates a business-friendly environment.