The Liberal Party said on Monday that the government should not bring in legislation enabling people to have their acquired or preferred gender recognised in law, as Hong Kong society doesn't accept the transgender community.
One of the party's district councillors, Dominic Lee, said gender dysphoria is an illness and those suffering from it should be given psychological treatment rather than legal recognition.
Lee was speaking ahead of Legco meeting to discuss a recent public consultation exercise on gender recognition.
He told RTHK's Priscilla Ng that the basis of the consultation was flawed and one reason is that even if someone undergoes a sex change, it cannot alter their DNA.
"This procedure will only give you the outer appearance of the opposite sex, so we believe that transgender doesn't really exist," Lee said.
"We have to make a balance between human rights as well as the values of society. I think Hong Kong is quite a conservative place, so at this point to make any big changes that contradict our core values, our moral values, will not be suitable," he said.
But barrister Azan Marwah, who spoke at the Legco meeting, said the government has a duty to take action to improve the lives of transgender people in the city.
"We can all agree that there is this small minority of Hong Kong people who are suffering, we can all agree that they need help and their need should not be ignored."
The government earlier sought views on issues such as whether evidence of a medical diagnosis relating to gender should be required for someone to change their registered sex, or whether medical intervention should be a prerequisite.