The study by the Justice Centre estimates that one in six, or 50,000 of Hong Kong's more than 300,000 migrant domestic workers -- mainly from Indonesia and the Philippines -- fell into the "forced labour" category.
Its findings come after a report by the UN Committee Against Torture in December urged Hong Kong authorities to reform laws in order to protect victims of forced labour and trafficking.
The plight of the city's domestic workers was also thrown into the international spotlight by the high-profile abuse case of Indonesian maid Erwiana Sulistyaningsih, whose Hong Kong employer received a six-year jail sentence last year.
Fourteen per cent of those in forced labour had been trafficked into the city, it said.
"Hong Kong must come clean and acknowledge these problems. It can no longer afford to sweep them under the carpet," said Piya Muqit, executive director of Justice Centre, a non-profit rights group.
"Current regulations can actually increase the vulnerability of workers to exploitation and victims face very real barriers in seeking assistance and justice," she said.
"Forced labour does not always involve physical violence, there are many tools of coercion and deception," said Victoria Wisniewski Otero, co-author of the study that interviewed more than 1,000 workers.
One Indonesian maid named as Indah told researchers she felt she had no choice but to continue working because of the debt she had incurred.
She also said she had no access to her passport, which was being held by her employer.
The report called on the Hong Kong government to review legislation, improve workers' living and working conditions, and penalise agencies that overcharge.
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