According to the Zhongtong Finance and Economics APP, the education sector is rising across the board. As of the time of publication, China Edu Group (00839) rose by 5.65% to HK$5.05; Beststudy Edu (03978) rose by 5.12% to HK$3.08; New Oriental-S (09901) rose by 3.85% to HK$47.15; China East Edu (00667) rose by 3.33% to HK$3.1.

On the news front, on October 28, the General Office of the State Council issued the 'Measures for Accelerating the Improvement of the Policy System to Support Childbirth and Promote the Construction of a Childbirth-Friendly Society'. Regarding education, the document proposes expanding the supply of high-quality educational resources and establishing childbirth subsidies. Haitong Securities believes that the policy aims to improve the policy system and incentive mechanisms to provide strong support for achieving a moderate fertility level and promoting high-quality population development; the policy is expected to boost the birth rate, thereby driving the increase in educational demand.

Zheshang Securities released research reports stating that the K12 summer/third-quarter revenue generally maintained a growth of 20%-40%, but the revenue growth rate is expected to slow down in the next quarter, with continued differentiated profitability. Considering that the dynamic valuation level of the education and training sector is relatively high within the consumer sector, companies with fundamentals in the short term should pay attention to the matching of production capacity expansion rhythm and enrollment growth rhythm. In addition, private high schools are the first to benefit from the rebound of Hong Kong stocks, as the cycle of U.S. Federal Reserve interest rate cuts begins + central bank policy stimulus. If Hong Kong stocks rebound as a whole, the education sector with low valuation in the past two years may perform relatively well in each market cycle.