The Hong Kong Arts Development Council (HKADC) was established by ordinance to plan, promote and support the broad development of the arts including literary, performing, film and media, visual arts as well as arts education in Hong Kong.

The HKADC is committed to nurturing a conducive environment for arts development. In addition to providing financial assistance to local artists and arts organisations, the HKADC, with government departments, public and private organisations, organised a variety of projects over the year, bringing the arts closer to the public.

The 5th Hong Kong Literature Festival jointly organised with the LCSD promoted creative writing and reading through symposiums, interflow activities and arts performances. The Hong Kong Book Fair co-presented with the Hong Kong Trade Development Council invited young and veteran writers from the Mainland, Taiwan and Hong Kong to give talks. More than 1 800 reproductions were loaned out in the Artwork on Loan Scheme in collaboration with Hong Kong Central Library since its launch. Twenty primary and secondary schools took part in the scheme by holding exhibitions on the artworks and invited artists held workshops and arts tutorials.

To bring the arts into the popular culture, the HKADC commissioned the Television Broadcasts Limited (TVB) to organise the Cantonese Opera Song Competition 2004. Another new attempt was Creative Design for Washrooms in Primary and Secondary Schools. Working with artists, students and teachers from 18 primary schools and 22 secondary schools gave face-lifts to their campus washrooms.

The HKADC organised the 28th Hong Kong International Film Festival in April. During the festival, 347 films from over 40 countries were screened and 120 fringe activities like exhibitions and seminars were organised. At the same time, the HKADC assisted in the corporisation of the Hong Kong International Film Festival, drafting the new company's Memorandum and Articles of Association and setting up its board of directors. The Hong Kong International Film Festival Society Limited was officially incorporated on April 21.