The city’s universities already have a strong global profile but policymakers now want to build on that foundation, increasing international enrolment, diversifying student markets and deepening collaboration across Asia Pacific and beyond.
At the centre of the system sits the University Grants Committee (UGC), which advises the government on higher education strategy and distributes public funding to the Hong Kong’s eight public universities.
Speaking to The PIE News during the 2026 Asia Pacific Association for International Education (APAIE) conference, held in Hong Kong, UGC secretary-general James Tang said the government has made international higher education a clear policy priority.
“[Internationalisation] has always been a strength of Hong Kong institutions, but the current administration has put much greater effort into supporting such development and has made a policy decision to position Hong Kong as an international post-secondary education hub,” Tang said.
Government funding distributed through the UGC accounts for close to half of the income of Hong Kong’s publicly funded universities. Tang describes the committee as a “hybrid” body that sits between government and the higher education sector, ensuring universities respond to policy priorities while also communicating the needs and ambitions of institutions back to policymakers.
About a quarter of the student population in Hong Kong’s universities are non-local students, with the proportion even higher among academic staff – roughly 70% of whom come from outside the city, explained Christine Choi, Hong Kong’s education secretary, while speaking at the conference.
In recent years, there has also been a rise in enrolments from countries participating in China’s Belt and Road Initiative and ASEAN countries, as institutions deepen regional partnerships.
Hong Kong, with our highly internationalised and diversified academic environment, is ready to play our part in working with partners around the world
Christine Choi, Hong Kong education secretary
“Hong Kong, with our highly internationalised and diversified academic environment, is ready to play our part in working with partners around the world,” said Choi.
The government sees the sector as a bridge between China and the wider world, particularly through links with the rapidly developing Guangdong-Hong Kong-Macao Greater Bay Area, which is emerging as a major innovation and technology hub.
Despite strong international standing, Hong Kong’s higher education system remains relatively compact. Tang said that if the city is to become a major international education hub, capacity will need to expand, particularly in terms of student accommodation and campus space.
“The eight public universities are really now becoming quite outstanding but to step up and make Hong Kong a major hub, means that we have to increase our capacity in accommodating all these students.”
To significantly increase international enrolment, Hong Kong must compete with established study destinations such as London and major Australian cities in offering infrastructure and a supportive student environment.
A downturn in the property market may provide an opportunity. Universities have begun acquiring additional properties while prices are lower, creating potential for expanded student housing and facilities, explained Tang.
Another priority for policymakers is diversifying the origins of international students. Tang said universities are increasingly targeting the Middle East and Central Asia, with Kazakhstan, for example, emerging as a growing source of students. Meanwhile, institutions are also looking to Europe and North America for increasing numbers of exchange students.
While competition remains intense, the international composition of Hong Kong’s academic workforce is widely seen as one of the system’s defining strengths.
Like many developed economies, Hong Kong is experiencing a declining birth rate, which means the number of local students is gradually shrinking. However, the government has maintained stable funding levels for the sector despite the demographic shift.
“Given the demographic trends, the birth rate in Hong Kong is dipping, but the government is still committed to providing the same level of funding and support for the number of students,” Tang said.
Meanwhile, international students also provide an important source of additional income for universities, complementing public funding streams.
Hong Kong universities regularly perform strongly in global rankings, but Tang said these are not used directly to determine public funding allocations.
Instead, the UGC relies on its own performance frameworks, including the Research Assessment Exercise – modelled partly on the UK’s Research Excellence Framework – to evaluate research quality and institutional outcomes.
Rankings, Tang said, are a form of international recognition, but the committee’s funding decisions focus on underlying performance – including research outputs and global collaboration – rather than headline rankings.
Looking ahead, Tang expects the number and diversity of international students in Hong Kong to increase significantly over the next decade. Universities will also play a larger role in shaping the city’s economic future, as Hong Kong places greater emphasis on innovation and technology alongside its traditional strengths in finance.
For Dennis Lo, vice-chancellor and president of the Chinese University of Hong Kong (CUHK), the city’s long-standing role as a bridge between cultures remains central to its global appeal.
Hong Kong has developed “a reputation as a hub for world-class education” with a mission to connect China and the West, said Lo, adding that the city’s universities are uniquely positioned to build partnerships that extend far beyond the region.
