This chapter aims to examine the unique challenging policy environment confronting Hong Kong schools from the perspective of neoliberal discourse and to reveal the reactive, as well as strategic responses of school leaders and teachers in coping with these challenges. As we argue, driven by the global trend of striving for international competitiveness in education and economy, Hong Kong's schooling is no exception to other systems that manifest signs of neoliberal normalization. Based on a systematic and critical analysis of the history and socio-political context of Hong Kong's public schools, this chapter discusses the major challenges faced by these schools which are inflicted by neoliberal discourses of reform, namely school governance, privatization, budget cuts, and performativity. The results of our analysis show that Hong Kong has not followed suit the western trajectory of neoliberal development but has developed its own path in response to its unique historical, cultural, and economic context. Copyright © 2021 Taylor & Francis.