Policy Address 2026: HK$10 billion loan ‘not enough’ for building new campus site, after John Lee announced the development of Northern Metropolis University Town

The new university town in the Northern Metropolis Development area will be expanded, Lee said today in the policy address, but universities, which are expected to fund new campuses, say the government is not offering enough money for building costs.

In April, the government announced a low-interest loan scheme with HK$10 billion reserved to support universities in building campuses in the new development area.

Dr Albert Chau, the Vice-President (Teaching and Learning) at Hong Kong Baptist University, said the low-interest loan  is “not enough”.

“Our university may  build new laboratories and buildings, and the required funding is substantial, despite a HK$10 billion loan for universities.”

Nineteen universities have submitted proposals for building a new campus in NMUT,  Choi Yuk-lin, the secretary for Education of Hong Kong, said in a press conference in June. If all the proposals are accepted, each university would receive an average of around HK$500 million.

According to the University Engagement Office of HKBU, its new Jockey Club Campus of Creativity, which opened in 2024 on its Kowloon Tong campus, cost HK$2.22 billion for 7,430 square metres, far exceeding HK$500 million.

Zhou Haoming, a post-graduate student at the University of Hong Kong, said he is concerned that universities may raise tuition fees to fill the funding gap.

“Government loans are a policy concession, but the school will ultimately have to put up the money for construction,”he said.

Chau said that the tuition fee at HKBU will only be raised to meet inflation and won’t be a major way to gather funding for expanding the campus site.

“We have no reason to transfer the burden of university development to our students. We should set proper tuition figures which students can afford. This is our social responsibility,” Chau said.

Universities are expected to seek funds by utilising reserves or flexible financing models, John Lee Ka-chiu said in his address this morning. He said the government encourages universities to issue bonds and involve social capital to attract markets.

Chau said there are many enthusiastic entities supporting HKBU through donations. 

“So once we confirm we will expand to the NMUT, we will discuss with them on which projects they find worthy to support,” Chau said.

The Hong Kong Jockey Club Charities Trust will also contribute funds to the university town, Lee said. They will allocate $3 billion to support the construction of an integrated teaching and scientific research building.