Education stocks led gains in Hong Kong's market. As of press time, CHINA EDU GROUP (00839) rose 7.67% to HK$3.09, SCHOLAR EDU (01769) gained 4.41% to HK$2.84, YUHUA EDU (06169) climbed 3.77% to HK$0.55, and NEW ORIENTAL-S (09901) increased 2.87% to HK$43.06.
Analysts noted that since 2025, the education sector has shown strong overall performance due to three key factors: policy improvements, growing market demand, and inelastic supply. Since July 2025, the industry has benefited from two major policies - birth subsidies and gradually free preschool education - which positively impact fertility rates and education spending while continuously optimizing education policies.
Meanwhile, AI continues to profoundly influence the education sector with increasing policy support. Industry leaders are expected to significantly benefit from the AI+education trend.
The vocational education segment, though currently undervalued in capital markets, shows signs of potential turnaround. With solid earnings support, the sector's valuation appears more stable. As performance continues to improve and market funds become more dispersed, value investors may find opportunities in undervalued, high-dividend stocks with strong fundamentals.