According to regulations, the bottom two teams, Hong Kong 08 and South China, were required to be relegated to the Second Division. However, both teams were retained in the top flight next season via HKFA exempted. Reason for retaining Hong Kong 08 is to give the team better preparation of 2008 Olympics Qualification games. South China was retained because the club promised to expand its next season's budget and sign new quality players. HKFA accepted this and hoped this would improve the competitiveness and attractiveness of the league.