Reporter’s Notebook: From Financial Hub to Global Classroom — Hong Kong’s Education Gold Rush

Hong Kong’s financial and educational sectors are experiencing significant resurgence and transformation. Just eighteen months ago, Hong Kong was widely regarded as a declining financial center. However, it has defied those expectations with a dramatic comeback. In 2024, Hong Kong is projected to reclaim the top position globally for IPO fundraising. The Hang Seng Index has risen approximately 30% year-to-date, reflecting renewed investor confidence, while the Hang Seng Biotech Index has soared around 90%, signaling robust growth in niche sectors despite challenges like the U.S.-China trade war [para. 1].

While finance regains its foundational role, education is emerging as another pillar of Hong Kong's economy. Geopolitical tensions, especially between the U.S. and China, have contributed to record-high applications from nonlocal students to Hong Kong universities in 2024. Responding to this growth, institutions like the Hong Kong University of Science and Technology’s (HKUST) Business School have made substantial investments — including 350 million Hong Kong dollars ($44.9 million) to secure additional urban teaching space for part-time classes [para. 2].

Hong Kong’s educational expansion is not limited to the local scene. The University of Hong Kong (HKU) Business School recently purchased a nine-story building in Barcelona, Spain, for about 300 million Hong Kong dollars, establishing its first European campus with more than 8,000 square meters of floor space [para. 3]. This international outlook is echoed by HKUST potentially planning further overseas expansions. Additionally, HKUST, in partnership with Tsinghua University, has launched a bilingual Doctor of Business Administration program tailored to Chinese entrepreneurs venturing abroad. This four-year program, which carries a tuition fee of 2 million yuan ($278,000), has already enrolled its inaugural cohort of 40 students as of August 2024 [para. 4].

The Hong Kong government’s talent and education policies have inadvertently benefited from geopolitical shifts, leading to a growing number of international students beyond the traditional influx from mainland China [para. 5]. There is now visible diversity across Hong Kong campuses, including exchanges and dual-degree programs with institutions in Central Asia, such as a newly launched dual-degree program with a leading university in Kazakhstan to attract Central Asian students [para. 6].

The trend is evident in application data. For the 2025/26 academic year, the Chinese University of Hong Kong received over 10,000 undergraduate applications from non-mainland overseas students, a 50% year-on-year increase [para. 7]. Similarly, there has been a marked rise in South Korean visitors and students. In 2024, Hong Kong welcomed 850,000 South Korean tourists (up 109% from the previous year). South Korea has also become a major source of international students, attracted by bilingual education and abundant career opportunities [para. 8].

The education boom’s ripple effects extend into real estate. Experts anticipate that the surge in nonlocal students will create a long-term upswing in demand for both commercial and residential properties. Between 2024 and the 2029-2030 academic years, Hong Kong’s student housing deficit is projected to expand from 77,700 to 131,000 beds [para. 9]. Universities control financial assets totaling 117 billion Hong Kong dollars, dwarfing the city’s total office and retail property transactions in 2024. Education-driven demand, including from mainland parents buying property for their children, has contributed to a rise in property transactions and prices, with mainland buyers now making up a quarter of purchases by value [para. 10].

However, rapid growth brings challenges: there have been scandals involving fake diplomas, concerns about the quality of instruction, and complaints about an increasingly narrow student demographic. Some students are primarily motivated by residency benefits rather than academics [para. 11]. Critics warn against the over-commercialization of education, fearing it could undermine quality and reputation, as seen in cases like Australia [para. 12].

In summary, Hong Kong’s resurgence as a financial and educational hub is driving economic and social transformation, but careful management will be required to maintain quality and global standing [para. 1][para. 2][para. 3][para. 4][para. 5][para. 6][para. 7][para. 8][para. 9][para. 10][para. 11][para. 12].