Reading literacy of fourth-grade students in Hong Kong showed a remarkable improvement from 2001 to 2006 as shown by international PIRLS studies. This study identified various aspects of the teacher factor contributing to the significant improvement among students. A total of 4,712 students and 144 teachers from 144 schools were randomly selected using probability proportional-to-size technique to receive the Reading Assessment Test and complete the Teacher's Questionnaire, respectively. A number of items pertaining to teachers' instructional strategies and activities, opportunities for students to read various types of materials, practices on assessment, and professional preparation and perception, were found to be significantly correlated with the outcome of students' reading literacy. Stepwise regression procedure revealed four significant predictors for students' overall reading achievement. The most powerful predictor was the use of materials from other subjects as reading resources. Suggestions to improve quality of teaching of reading and further studies are made.