End of Debentures in Hong Kong Schools: A Fairer Future
Jun 22, 2025The debenture system, a long-standing practice in Hong Kong’s top international schools, is fading; a trend Top Schools spotted early and welcomes. For years, wealthy parents could pay up to HK$7M+ to secure priority admission for their children, bypassing standard queues. While optional, this practice raised fairness concerns and is not without risk. Thankfully, the mandatory debenture is disappearing, creating a more accessible education landscape.
Understanding the Debenture
In Hong Kong’s private schools, a debenture is a one-time payment parents make to gain priority admission for their child. These funds support infrastructure projects like new facilities. There are two types: optional debentures, which move a child to the top of the admissions list for entrance assessments, and mandatory ones. If a child passes and a space is available, admission is highly likely. Debentures may be refundable after a period (e.g., 15 years), transferable, or donated to the school outright.
A Decade of Change
Ten years ago, mandatory debentures of HK$100 - 600,000 were common at top schools, alongside optional ones. As we approach the 2025/26 academic year, fewer than a dozen schools retain this model. Many are switching to annual capital levies, with Kellett School being the latest to replace its mandatory debenture with a levy for new offers after 31 August 2025; a shift towards inclusivity that Top Schools has long advocated for.
Why This Matters for Families
Debentures have been a barrier, especially for families managing regular fees but unable to afford large upfront payments. Even HK$100,000 can be daunting, particularly with multiple children. Annual levies of HK$25,000-45,000 now fund upgrades more equitably. At Top Schools, we’ve guided clients to seek waivers or choose schools without debentures, ensuring access to top-tier education without outdated burdens.
* Originally published in The Standard in June 2025 with the title 'The Death of the Debenture: A Shift Towards Fairness in Hong Kong Schools'
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