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Kwan landed a job at the TVB after receiving a mass communications degree at Hong Kong Baptist College. Kwan's first film was Women (1985), which starred Chow Yun-Fat, and was a big box-office success.

Kwan's films often deal sympathetically with the plight of women and their struggles with romantic affairs of the heart. His 1998 film Hold You Tight won the Alfred Bauer Prize and Teddy Award at the 48th Berlin International Film Festival.

Kwan came out as a gay man in 1996 in Yang ± Yin, his documentary looking at the history of Chinese-language film through the prism of gender roles and sexuality. He is one of the few openly gay directors in Asia and one of the very few to have worked on these themes.