What’s the fastest-growing industry in the Hong Kong Special Administrative Region? It’s not fintech. Not real estate. Not even logistics. It’s higher education. And unlike other sectors, it didn’t have to fight its way to the top — it simply opened its doors, and the world came knocking.

Hong Kong’s universities — particularly the “big three” of the University of Hong Kong (HKU), the Chinese University of Hong Kong (CUHK), and the Hong Kong University of Science and Technology (HKUST) — have quietly become magnets for talent. They’re building new campuses, increasing enrollment, and, notably, welcoming a growing wave of students from the Chinese mainland, Southeast Asia, and beyond. It’s not just students either — an entire cohort of ethnic-Chinese academics is returning from the West, drawn by more stable career prospects, better funding, and a sense of home. In a strange twist of fate, as Western institutions grow increasingly insular, Hong Kong has emerged as the new global classroom.

At the heart of this rise is a seismic geopolitical shift. The United States, once the undisputed leader in global education, is looking less appealing by the year. The promise of academic freedom rings hollow when campuses are torn by political divisions; international students are burdened by uncertain visas; and faculty face rising suspicion. If even free speech is no longer a guaranteed hallmark of the West, then why not study in Asia?

But Hong Kong’s success in education isn’t just about picking up what others are dropping. It’s about recognizing education as both a soft-power tool and an economic engine. And in this city, that engine is revving up.

This summer, Hong Kong secondary students achieved something remarkable in the International Baccalaureate (IB) examinations. At least 30 candidates scored a perfect 45 points — the maximum possible score and a badge of elite academic performance. More strikingly, one-third of all Hong Kong IB candidates scored over 40 points, placing them in the top 3 to 5 percent globally. That’s not a fluke. It’s the result of an education system that’s been quietly excelling, despite all the noise. In a city of just 7 million, Hong Kong produces nearly 10 percent of the world’s top IB scorers.

These results mirror a broader trend. Five of Hong Kong’s universities now sit comfortably in the world’s top 100, and recent QS rankings have only reinforced the city’s academic credibility. At this point, it’s not a stretch to say that Hong Kong is no longer just competing with Oxford University and Stanford University — it’s offering an alternative.

Now, follow the money. Nonlocal students pursuing undergraduate and postgraduate degrees are contributing significantly — not just in tuition, but across the entire economy. Master’s-degree programs, in particular, are booming, with tens of thousands of students enrolling each year, often paying six-figure tuition fees. Beyond that, international students rent homes, eat out, shop locally, and bring visiting friends and family members, who also spend in the city.

In other words, education has become one of the few areas in which Hong Kong has found a real competitive edge — and it’s paying dividends. Officials are now wisely reframing “Study in Hong Kong” as more than a slogan. It’s becoming the blueprint for a “study economy,” where education drives demand in sectors like housing, hospitality, retail, and transportation.

But let’s be clear: This is not an invitation to turn education into a profit-chasing industry. Hong Kong’s universities are nonprofit institutions, and that status must remain sacrosanct. The point isn’t to treat students as walking ATMs, but to recognize that their presence — when managed strategically — creates multiplier effects throughout the city.

What’s the fastest-growing industry in the Hong Kong Special Administrative Region? It’s not fintech. Not real estate. Not even logistics. It’s higher education. And unlike other sectors, it didn’t have to fight its way to the top — it simply opened its doors, and the world came knocking

For example, consider student housing. With the influx of international students, demand for accommodations has surged. The government plans to add 13,500 new dormitory beds by 2027 and has earmarked over 80 hectares in the Northern Metropolis for a new “University Education City”. But here’s the catch: Public funds should not be used to subsidize dormitories for international students. Instead, let market forces lead. Build affordable, privately funded student residences, and allow rental income to flow where it belongs — into sustainable infrastructure and community development.

Some critics argue that building a reputation as an education hub means draining local resources for the benefit of the international students. But the numbers tell a different story. Every student living in Hong Kong contributes far more than just tuition. They rent apartments, eat out, travel, shop, and — if we’re lucky—fall in love with the city and stay. Their families visit. Their peers follow. The cultural and economic ripple effect is far-reaching.

Western countries know this well. In the US, over 1 million international students contributed over $40 billion to the economy in 2023-24. In the United Kingdom, the figure stood at 42 billion pounds ($57 billion) in 2021-22. Even in smaller countries like Sweden, international students have a measurable economic impact, contributing billions of kronor (hundreds of millions of US dollars) annually through tuition fees, housing, and daily spending.

So why shouldn’t Hong Kong tap into the same formula?

The key will be to balance ambition with accountability. Every policy aimed at attracting international students should be weighed against its real economic return. Scholarships, housing subsidies, and job placement programs must be assessed through the lens of public value. Education isn’t just about branding — it’s about benefits. What jobs does it create? What industries does it support? What kind of alumni does it produce?

To that end, Hong Kong must not only attract students — but keep them. Let them stay, work, and contribute. Design visa programs that allow graduates to explore local employment. Create pathways for them to act as bridges between Hong Kong and their home countries. Turn them into Hong Kong’s ambassadors abroad. A “super talent hub” isn’t built through degrees alone, but through networks.

Since last year, Education Secretary Christine Choi Yuk-lin has led delegations to various locations — including Seoul, Beijing, and the UK — to promote the “Study in Hong Kong” brand and attract international students. It’s a smart move. But branding alone is not enough. We need infrastructure. We need integration. And most of all, we need imagination.

Because the real prize isn’t just a better university ranking — it’s the chance to reimagine Hong Kong’s place in the world. A global city not just of bankers and lawyers, but of teachers, thinkers, researchers, and students. At a time when borders are tightening and worldviews narrowing, that might just be Hong Kong’s boldest move yet.

The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.

The views do not necessarily reflect those of China Daily.