The Research Grants Council (RGC) was formally established on 1 January 1991 to replace the Research Sub-Committee of the UGC and functions as a semi-autonomous advisory body within the organizational structure of the Committee on research matters. It works in close partnership with the UGC and advises and reports to the Government through the UGC on matters within its purview.

Peer-Review
The Council is assisted in its work by four specialist subject panels responsible for: Physical Sciences; Engineering; Biology & Medicine; and Humanities, Social Sciences & Business Studies. These panels consist predominantly of local academics, with also some overseas academics. In assessing applications for research grants on the basis of peer review, the panels work through a network of referees, comprising recognized experts in their fields both in Hong Kong and overseas, Normally a proposal will be reviewed by at least two reviewers.

Meetings
The RGC meets twice a year in Hong Kong, usually in June and December. The June meeting is mainly concerned with the allocation of the Earmarked Research Grant. The December meeting is devoted primarily to resource allocation for the following year and preliminary consideration of applications for competitive research grants. The subject panels normally meet once a year, normally in June prior to the RGC meeting, mainly to consider applications for allocations from the Earmarked Research Grant as well as to monitor on-going projects and assess completed projects.

Funding Cycle
The RGC's competitive bidding cycle starts when the institutions are required to submit by October/November each year bids for the Earmarked Research Grants for the following year. The bids received are initially examined by the Council's subject panels between December and the following May with assistance from specialist academic assessors/referees either in Hong Kong or overseas. The panels then select proposals to be recommended for funding support to RGC. The RGC finally decides how the Earmarked Research Grant should be distributed at its June meeting.

Allocation of Funds
The RGC formulates principles, guidelines and procedures for the allocation of Earmarked Research Grant. A portion (currently about 15%) of the Grant is directly allocated to the UGC-funded institutions to support small-scale research projects (costing less than $200,000). The distribution of the sum is basically determined with reference to the institutional staff size and other factors relevant to research. The major portion (currently about 80%) of the Earmarked Research Grant is allocated in response to competitive bids for specific project grants from individuals or groups of staff of the UGC-funded institutions. The balance is centrally allocated in response to bids from the institutions for major research facilities/equipment or library collection to support collaborative research involving two or more institutions, or group research activities that operate across disciplines and/or normal institutional boundaries.