The United Kingdom and China's Hong Kong Special Administrative Region have emerged as the top two overseas study destinations for students on the Chinese mainland in 2026, according to a new report on Tuesday.

This marks the first time Hong Kong has secured the second position in 12 years, while the United States has slipped to third amid policy uncertainties, according to the 2026 Report on Chinese Students' Overseas Study released by the New Oriental Education and Technology Group.

The report, based on an online survey of 6,904 students and parents, revealed a significant reordering of popular study destinations. The United Kingdom has maintained its pole position for seven consecutive years, buoyed by stable education quality, flexible visa policies, and a mature international student ecosystem.

Hong Kong's ascent to second place is particularly noteworthy. Over the past 12 years, the city has climbed steadily in popularity, with its geographical proximity to the Chinese mainland, safe environment, and linguistic familiarity serving as key draws, the report said.

The United States, long considered a dream destination, has fallen to third place for the first time. The report attributes this decline to fluctuating policy environments, which have made prospective students and their parents increasingly cautious. The US was ranked in top place from 2015 to 2019, and later dropped to second place from 2020 to 2025, the report said.

Australia, Japan, and Singapore were ranked fourth to sixth, respectively, in 2026.

Perhaps the most striking finding in this year's report is the dramatic rise of cost considerations in university selection. Tuition fees have jumped to become the second most important factor influencing choice, while scholarship policies have also gained significant weight.

The average study-abroad budget for Chinese students has reached a 12-year high of 605,000 yuan ($87,800) in 2026, driven primarily by global inflation and rising tuition and living costs. Despite the increased financial burden, demand for overseas education remains robust, underscoring its perceived value as a long-term investment, the report said.

This pragmatic approach is reflected in application strategies as well. More than half of prospective students now plan to apply to universities in two or three countries or regions simultaneously — a strategy designed to mitigate risks associated with policy changes or admission uncertainties in any single destination.

In disciplinary preferences, engineering has maintained its position as the most popular field of study for 10 consecutive years, accounting for 22 percent of all applications in 2026. Its strong employability and global recognition have cemented its status as a "global passport" for graduates, the report added.