Hundreds of asylum seekers were seen sleeping on the sidewalk outside the Roosevelt Hotel, the city's migrant intake centre, since last week, before the area was cleared on Thursday, Xinhua news agency reported.
An executive order was issued on Friday to formally direct all relevant agencies in the city to coordinate their efforts to respond to the asylum seeker humanitarian crisis and construct humanitarian relief centres on a transitory basis.
The landmark decision makes it likely other Hong Kongers will be given sanctuary in Canada, which has emerged as a top destination for those fleeing Beijing's crackdown.