The observatory on Saturday issued the No 8 Southeast Gale or Storm Signal at 3.40 am, replacing the Hurricane Signal No 10, as Saola moves further away from Hong Kong.
Forecasters said this means that winds with mean speeds of 63 kilometres per hour or more are expected, and gales are expected to persist for some time.
It said the number eight signal will remain in force until at least noon.
"Local winds have slightly weakened, but gale and storm force winds are still affecting many places," the observatory said.
Forecasters called on members of the public to continue to stay indoors until winds weaken, and said they should not let their guard down.
The observatory said under the influence of a storm surge, the water level at Tai Po reached about four metres above chart datum in the early hours of Saturday.
It said the water level at Tai O and Tsim Bei Tsui will rise to some three metres above chart datum between 9am and noon.
Meanwhile, authorities said that up until 3.40am, 51 people had gone to public hospitals for injuries sustained during the storm, while nearly 500 people sought refuge at the administration's temporary shelters across the SAR.
Officials also confirmed 11 cases of flooding along with 74 reports of fallen trees.
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Last updated: 2023-09-02 HKT 04:17