This paper is an attempt to draw the statistical data from reports and documents to reveal the rationale for subsidizing the higher education in Hong Kong. There is a discussion made with reference to educational planning interacting with personal choice. The notion of economics has been noted with consideration of allocation of scarce resources and how the behaviour is adjusted by means of the mechanism and the optimization of goal. The higher education institutes can assist the improvement of the local regime through the training of competent and responsible professionals. Financing higher education is sensible as the optimization of goal is obvious.