For generations, ambitious Hong Kong families have operated on a simple belief: A Western university degree is a superior credential. Parents have drained savings, children have endured brutal application seasons, and tens of thousands of students have gone overseas. That assumption is not only outdated. It is increasingly irrational.

Consider the latest QS World University Rankings 2026. The University of Hong Kong (HKU) now ranks 11th in the world, ahead of Yale University (21st) and Princeton University (25th) — both members of the Ivy League. Five former US presidents are alumni of Yale, including Bill Clinton and George W Bush. Princeton is the alma mater of Amazon founder Jeff Bezos and father of computer science Alan Turing. While these names lend historical luster to the Ivy League, academic prestige is not a museum piece; it must be measured by contemporary performance.

Now consider cost. Yale charges approximately $68,000 per year in basic tuition. Princeton charges roughly $72,000. A four-year degree at either institution can easily cost more than $350,000. For a Hong Kong resident, the cost of earning an undergraduate degree at any local public university is heavily subsidized, with the annual tuition for the 2026-27 academic year at HK$47,000 ($6,000). A four-year degree at HKU costs less than a single semester at Yale or Princeton. The math alone should give any rational parent pause.

What about admission? Only a handful of top international baccalaureate (IB) students from Hong Kong’s elite international schools receive offers from Yale or Princeton each year. Parents often throw parties to celebrate if their children receive an offer from any Ivy League college. At HKU, admission remains competitive, but many local students still gain admission. Last year, the average Hong Kong Diploma of Secondary Education score was 30.58 based on the best five subjects, while the IB threshold for social science programs was approximately 36 points. Respectable scores, but not the near-impossible hurdle that American elite admissions have become.

So why would anyone pay 10 times more for a university ranked lower by QS with astronomically lower odds of admission? What is the point of subjecting students to an increasingly punishing and expensive admissions race for what are essentially diminishing returns?

HKU is not alone in making progress on the QS ranking. Over the past two decades, the Hong Kong Polytechnic University has climbed to 54th in QS 2026. City University of Hong Kong is now ranked 63rd. The Hong Kong Baptist University is placed 244th and could crack the top 200 in a few years. These improvements represent a fundamental reordering of global academic hierarchies. This is not accidental. It is the result of deliberate, sustained public investment.

Professor David Cardwell, former pro-vice-chancellor of the University of Cambridge and a member of Hong Kong’s University Grants Committee, has frequently contrasted Hong Kong’s robust funding with the severe financial pressures facing British institutions.

Funding determines talent, and talent determines rankings.

The broader “Hong Kong ascent” means local graduates are entering a market that is increasingly attracting the world’s best talent. Either way, a Hong Kong degree comes with a built-in launchpad into the global workforce

In Hong Kong, an assistant professor earns roughly $120,000 to $150,000 annually. In the United Kingdom, a lecturer earns roughly $65,000 to $80,000. The disparity is striking, and it becomes even more pronounced after accounting for Britain’s higher tax rates.

On research funding, Hong Kong has injected HK$20 billion into the Research Endowment Fund and plans to double competitive research funding from HK$2 billion to HK$4 billion per annum. By contrast, the UK faces a 3.7 billion pound ($4.98 billion) reduction in higher education funding between 2024 and 2030.

If Britain is no longer a good choice, why not look to the United States? American institutions still dominate the global top 10, and cultural exchange has its place. But that experience should not come at the cost of rational financial planning.

The US administration has launched an unprecedented assault on American higher education institutions. Since January 2025, it has terminated or suspended federal research grants valued at between $6.9 billion and $8.2 billion. A new 15 percent cap on indirect research costs has replaced negotiated rates that often ranged between 50 and 70 percent. In October 2025, the White House issued a “Compact for Academic Excellence in Higher Education” plan, effectively telling universities to comply with its ideological demands or “forego federal benefits” entirely.

The consequences are visible. In the QS 2026 ranking, 62 American institutions slipped compared with only 19 that rose. Talent is flowing eastward.

Beyond cost and rankings, Hong Kong offers something unique. For nonlocal graduates, the Immigration Arrangements for Nonlocal Graduates visa provides a two-year grace period to seek employment without visa pressure. For local students, they graduate into a world-class financial and innovation hub where their degrees are instantly recognized. The broader “Hong Kong ascent” means local graduates are entering a market that is increasingly attracting the world’s best talent. Either way, a Hong Kong degree comes with a built-in launchpad into the global workforce.

To be fair, not every student can achieve the DSE or IB scores required for Hong Kong’s top universities. For some, overseas institutions with lower entry requirements may be an alternative. Others simply want the experience of studying abroad. These are valid reasons. But they should be exceptions, not defaults.

Every student can benefit from overseas exposure, whether through a postgraduate degree or an exchange program. Such experiences certainly add value to a resume. But the reflex to view an overseas degree as inherently superior is no longer a sign of ambition; it is a failure of logic. In the new global academic order, the smart money is staying home.

The author is a senior lecturer in the Department of Marketing, the Hang Seng University of Hong Kong.

The views do not necessarily reflect those of China Daily.