In alignment with the New Academic Structure, the Hong Kong Diploma of Secondary Education Examination (HKDSE) was launched in 2012 to replace the former Hong Kong Certificate of Education Examination (HKCEE) as certification for completion of secondary education, and the Hong Kong Advanced Level Examination (HKALE) as the main credentials for university admission in Hong Kong. Standards-referenced reporting is adopted for the HKDSE with the objective of reporting candidates' results against a set of prescribed levels of achievement based on typical performances at those levels. Clearly defined standards facilitate learning and teaching as well as enable users of the qualification, including tertiary institutions and employers, to set appropriate entrance/job requirements. The standards are set and maintained by expert judgement supported by psychometric data to ensure fairness and consistency of standards across subjects and across cohorts. Systemic and implementation issues and their resolutions are discussed in the context of the education reform in Hong Kong.