Purpose – This paper aims to review and analyze the functions, strategies and related issues of developing a regional education hub in the trends of education development in China as well as the Asian Pacific region. Design/methodology/approach – Taking Hong Kong as an emerging case, it examines through literature and international comparison the relationship between education hub development and higher education development as well as the strategic functions of an education hub to the future development of Hong Kong. Findings – The development of an education hub was found closely linked to the demand for higher education in the Asian Pacific region as well as the internal dynamic of higher education and society in Hong Kong. The mode of education hub development in Hong Kong should be driven by soft-power building instead of industrialization. The requirements for successful implementation include the huge demands for higher education in the region, the strengths of the higher education sector, the supporting policies and measures for international students and education service providers, and the leadership and support of central agencies. Originality/value – This paper provides a new typology of higher education developments and a new mode of education hub development to analyze the strategic functions and requirements of developing education hub in the context of Asia-Pacific Region. The discussion and analysis in this paper will contribute to the related literature, policy development and initiative implementation in the areas of education hub and higher education not only in Hong Kong but also other parts of the world.[Copyright © 2011 Emerald Group Publishing Limited.]