Whether older adults can maintain levels of adaptation that allow continuation of independent living is necessarily contingent upon the maintenance of levels of everyday competence. This study identifies factors correlated to everyday competence measured by a Chinese version of the Direct Assessment of Functional Abilities among Hong Kong Chinese elderly people. The respondents were 393 people aged 60 years or older from a cross-sectional study of a representative community sample of the elderly population in Hong Kong and they were interviewed in a face-to-face format. In multiple regression analyses, we found that self-rated health, sight, and global cognitive ability were positively associated with everyday competence whereas the presence of arthritis had a negative impact on the everyday competence. All these findings are consistent with previous Western studies. Copyright © 2003 Taylor & Francis.