The Education Bureau on Tuesday said it was "unethical" for schools to attract new students with money, after a primary school in Cheung Chau said it would give new students a HK$10,000 scholarship.
The Church of Christ in China Cheung Chau Church Kam Kong Primary School announced on its website that it is handing a HK$10,000 scholarship to P1 students next year, in a bid to encourage more pupils to receive their education.
The school was allowed to offer P1 classes on a private basis this academic year, after it failed to recruit enough students to receive government subsidies.
But the Education Bureau said it is clearly stated in the School Administration Guide that schools should not attract or retain students with money, saying that would be "inappropriate" and "unethical".
The bureau said it has reminded the school to follow enrolment instructions, adding it would follow up any violations in a serious manner.
It added schools should clearly communicate to parents the aim of scholarships, if they want to reward excellent performance or to alleviate the economic burden of students in need.