The financial reserves of Hong Kong’s eight public universities rose to nearly HK$140 billion (US$18 billion) in the last academic year, an 11 per cent increase from 2022-23, according to funding authorities.
The Post obtained the figures from the University Grants Committee (UGC) on Tuesday, two days after Financial Secretary Paul Chan Mo-po said higher education institutions could make better use of their reserves. Chan is expected to announce public spending cuts in his budget later this month.
Total reserves were about HK$139.3 billion, according to the UGC, which allocates funding to the public universities.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
The combined reserves equal six academic years of recurrent funding for the eight universities, given the allocation for those institutions stood at around HK$63.2 billion from 2022 to 2025.
The latest reserves figure marked an 11 per cent jump from the HK$125.9 billion recorded during the 2022-23 academic year.
“According to the universities’ financial reports, HK$17.6 billion was UGC-funded reserves and HK$121.7 billion was non-UGC-funded reserves,” the committee said.
Universities were allowed to use their reserves for long-term development or other designated purposes, and some used the funds for enhancing campus facilities and new projects, according to a Legislative Council document.
The huge accumulation of reserves is partly due to the unspent UGC funds that universities are allowed to carry forward at the end of the funding triennium, which is limited to a maximum of 20 per cent of the university’s approved recurrent grants.
If the balance crosses the ceiling allowed for that funding period, the excess has to be refunded to the UGC, according to the universities’ annual reports.
On Sunday, the finance chief said there was “space for saving money” in the education and healthcare sectors.
Chan said annual public spending on education had become huge, arguing universities could make good use of their reserves and expand their sources of income.
According to the annual report of the Chinese University of Hong Kong, the recovery in major investment markets had yielded substantial returns, resulting in increased surplus and reserves.
“This strong financial reserve enables the university to continue investing in various strategic areas outlined in the CUHK Strategic Plan,” the report said.
The increase in reserves at the Hong Kong University of Science and Technology was due to favourable investments, according to the institution’s annual report.
“To ensure the success of various initiatives and projects, the university will continue to exercise prudence and caution in its financial planning, ensuring that adequate resources are available for future development,” the report read.
Chow Man-kong, who is a professor of practice at the department of data science at City University, said the institution’s financial status would remain healthy despite a possible cut in funding by the government.
“The eight universities are subsidised institutions and a minor cut in funding will not affect universities’ education and manpower,” he said, urging higher institutions to maintain the quality of their education and not to fire employees.
More from South China Morning Post:
- Financial reserves ‘can help Hong Kong public universities weather funding cuts’
- Hong Kong should lure wealthy visitors for high-end health services: experts
For the latest news from the South China Morning Post download our mobile app. Copyright 2025.
