OBJECTIVE：To provide reference for the price management of medicines in Chinese mainland by inquiring into relative management in Hong Kong. METHODS：Based on the steps of price management and the value chain of medicines in Hong Kong，the management mechanism of medicine pricing，circulation and compensation were researched. RESULTS & CONCLUSIONS： The prices of the medicines in Hong Kong are mainly determined by the tender between Hospital Authority and the pharmaceutical suppliers. In circulation，medicine payer as main body in bidding and purchase conduct“high quality”bidding and“mass” purchase，and price remained the same in public hospital. On the basis of the purchase price，the price that actually paid by patients is the result of government compensation. Chinese mainland can draw lessons from such drug bidding mode in Hong Kong which will lead health care department to act as the main body in bidding，weaken the relationship between the hospitals and the drug dealers or manufacturers，and expand the government’s financial investment in public medical institutions to improve reimbursement.