This study sought to determine how student-teachers perceived their competence as they proceeded through a 2-year certificate program and to identify what changes occurred in their perception during the first year of teaching. The subjects were student teachers in a new Certificate of Education Program (in primary education) at the Hong Kong Institute of Education who were followed from the beginning of the second year through their first year of full-time teaching. Both student teachers and beginning teachers perceived themselves as having higher competence in the classroom domain and lower in the school, community, and professional domains. Teachers appeared to have acquired competence in the classroom, but remained challenged by school situations and relations with administrators, peers, and parents. These results confirm the importance of school experience as part of teacher education. Results support the value of such student and beginning teacher induction provisions as seminars and mentoring arrangements, which have not been widely used in teacher education in Hong Kong but are now part of the new program. The results also suggest the need for continuing professional education throughout the teacher's career. (Contains 28 references.) (JLS)