Using the case of Chinese schools in post-Second World War Hong Kong, this paper explores the unintended consequences of an incomplete hegemonic project. After World War II, anti-imperialist pressures and rising educational demands in the local setting propelled the colonial authorities to be more active in providing and funding Chinese schools. This development created a considerable number of vernacular institutions that were either directly state-run or generously government-financed. Nevertheless, this concession was circumscribed because the regime eschewed universal and compulsory education, and many Chinese schools remained private and unaided. Producing three different types of vernacular institutions, the state's partial incorporation of these institutions unwittingly divided these schools and pre-empted them from forming a united, antagonistic identity. These findings urge us to examine carefully, when using Gramsci's concept of hegemony, the extent of compromise the powerful have actually conceded. They also hint that hegemony should not be conceived only as a conscious, conspiratorial project, for state practices occasioned by conjunctural forces may produce unintended consequences that have profound repercussions on political power. (Contains 21 notes.)