Popular music in Hong Kong is the production of a multi-faceted dynamic of international and local factors. Although there has been much attention to its growth from different perspectives, there has been no single study that systematically addresses the complicated interplay of the two interrelated processes of globalisation and localisation that lie behind its development. The main aim of this paper is to explore how social circumstances mediate musical communication among Hong Kong popular artists and audiences, and contribute to its growing sense of cultural identity – how locality emerges in the context of a global culture and how global facts take local form. Firstly, I propose a conceptual framework for understanding the cultural dynamics of popular music in terms of the discourse of globalisation and localisation. Secondly, I consider local practices of musical consumption and production. Thirdly, this paper discusses the impact of the global entertainment business on local popular music. I conclude with a summary of the effects of the interaction between globalisation and localisation on Hong Kong popular music.