A 58-year-old man was arrested "on suspicion of conspiracy to manufacture explosives" at northern border point Lo Wu late yesterday, police said.
They had already arrested nine people yesterday on the same charge. All the suspects were detained overnight.
Police said yesterday that one of those arrested had claimed to be a member of a "radical local group".
They would not name the group or specify motives but said that maps of central districts of Hong Kong had been found and warned anyone taking part in public gatherings to stay away from "violent protesters".
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Chemicals were seized at an abandoned television studio in the eastern district of Sai Kung as part of the operation yesterday, with some detonated at the scene.
A house search later led to the seizure of ingredients which police said could be used to make the powerful explosive TATP.
Maps of central neighbourhoods were also found, as well as a number of air rifles and face masks.
But pro-democracy and localist campaigners questioned the link.
"People have never heard of the organisation and don't know its members.
"The whole thing could be a set-up intended as a smear campaign against the localist camp," said commentator Kam Sai-kit, writing for pro-democracy portal Post852.
The reform bill to be voted on lays out a proposal for choosing the city's next leader by public vote for the first time in 2017.
But it sticks to a ruling from Beijing which stipulates that candidates must be vetted by a loyalist committee.
Pro-democracy legislators are vowing to block the proposal.