Ten years ago, less than five per cent of the 17-20 age group could receive higher education in Hong Kong. By 1994-95, this figure increased to about 18 per cent, with 14 500 places available for first-year first-degree courses. A further six per cent of the relevant age group have access to first-year sub-degree courses. Degrees up to doctorate level awarded locally are recognised by institutions of higher learning around the world. Academic standards are guaranteed by the appointment of external examiners from prominent overseas universities and colleges. The Hong Kong Council for Academic Accreditation validates courses and programmes offered by Hong Kong's non-university, degree-awarding institutions.

There are 10 tertiary institutions, eight of which are funded through the UGC. Seven of the eight are self-accrediting institutions (including six universities and one liberal arts college). The other one is the Hong Kong Institute of Education which is a teacher training institution. Two other degree-awarding tertiary institutions are not funded by the UGC. They are the publicly-funded Hong Kong Academy for Performing Arts and the self-financing Open University of Hong Kong.

        The eight higher educational institutions funded through the UGC are:

        Each of these institutions is an autonomous statutory body with its own Ordinance and governing bodies. They have freedom to manage their own affairs within the restraints of the law. As they are largely supported by government funds, and because of the social, cultural and economic importance of higher education, the government and the public at large have a legitimate interest in the operation of the institutions to ensure that they are providing higher education in the most cost-effective manner and are serving the needs of the community. The UGC advises the government on the development of these institutions and on their financial needs. The eight institutions have distinctive and complementary roles which reflect their varying origins and the way they have responded to Hong Kong's complex and evolving needs. The UGC's aim is to develop a system of higher education that has an appropriate balance between programmes at different levels and in different areas through teaching, research and other means.

        Established in 1984 as the City Polytechnic of Hong Kong, the CityU was awarded university status in 1994. It offers over 90 programmes including higher diplomas and postgraduate courses, with a strong emphasis on professional and vocational training and linkages with industry. These programmes are run by the three faculties (Faculty of Business, Faculty of Humanities and Social Sciences and Faculty of Science and Engineering), the School of Law, the School of Creative Media and the College of Higher Vocational Studies.

        HKBU was founded by the Baptist Convention of Hong Kong in 1956 as the Hong Kong Baptist College. In 1983, it was incorporated through legislation as a tertiary institution capable of offering degree courses, and became 100 per cent funded by the government. In 1989, the college became the third tertiary institution in Hong Kong to operate fully at the degree level. It was accorded formal university title and status through legislation in 1994. The university now offers 39 undergraduate programmes, 10 taught postgraduate programmes, and research programmes through its five faculties/schools of arts, business, communication, science and social sciences.

        CUHK was established in 1963 by bringing together New Asia College (founded in 1949), Chung Chi College (1951) and United College (1956). A fourth institution, Shaw College, was founded in 1986. It provides undergraduate and postgraduate programmes through seven faculties: Arts, Business Administration, Education, Engineering, Medicine, Science and Social Science.

        HKIEd was established in September 1994 by merging the four Colleges of Education and the Institute of Language in Education. Since its establishment, the HKIEd has provided pre-service and in-service sub-degree teacher education courses targeted at teaching from pre-primary to secondary levels. It came under the aegis of the UGC in the 1996-97 academic year. Starting from the 1998-99 academic year, it also offers degree programme and a self-financing postgraduate programme.

        PolyU, established in 1972 as the Hong Kong Polytechnic, attained full university status in 1994. It offers postgraduate, degree and sub-degree programmes under different modes of attendance in 29 academic departments and centres grouped under six faculties: Applied Science and Textiles, Business and Information Systems, Communication, Construction and Land Use, Engineering, and Health and Social Studies. It emphasises the application of knowledge and vocational training, and maintains strong links with industry and employers.

        HKUST, founded in 1991, awards bachelor's master's and doctoral degrees in three schools: Science, Engineering, and Business and Management. A fourth school, Humanities and Social Science, offers graduate degrees and provides general education for all undergraduates.

        The student enrolment (in full-time equivalent terms) of the eight institutions in the 1997-98 academic year was:

Hong Kong Shue Yan College, registered in 1976 under the Post-Secondary Colleges Ordinance, operates a four-year diploma programme. Its faculties of Arts, Social Sciences and Commerce offer day and evening courses to more than 3 000 students. The college is a privately-funded institution and does not receive any direct subsidy but government financial assistance is available to its students in the form of grants and loans.