Hong Kong stock concept tracking | The policy favoring private education and extracurricular training is introduced. The education sector may usher in a valuation recovery (with a list of concept stocks).

On November 6th, the Beijing Municipal Education Commission and the Beijing Municipal Human Resources and Social Security Bureau issued the "Implementation Measures of Beijing Municipality for the Promotion of the Law of the People's Republic of China on Private Education (Draft for Solicitation of Opinions)", which mainly targeted private educational qualifications and made targeted revisions to extracurricular training institutions. For extracurricular training institutions, the focus is on the issuance of subsequent subject licenses; for private educational qualifications, the selection process is expected to accelerate. A research report released by Zheshang stated that K12 summer/third-quarter revenues generally maintained a growth rate of 20%-40%, and the revenue growth rate for the next quarter is expected to slow down overall, with continued differentiation in profitability; considering that the dynamic valuation level of the education and training sector is already relatively high within the consumer sector, companies with solid fundamentals should pay attention to the matching pace of capacity expansion and enrollment growth in the short term. In addition, private higher education is benefiting from the recovery of Hong Kong stocks, the start of the Fed's rate cut cycle, and central bank policy stimulation. If there is a rebound in Hong Kong stocks as a whole, the education sector with low valuations in the past two years may perform well in each round of market movements. Hong Kong-listed education-related stocks include CHINA EDU GROUP (00839), BESTSTUDY EDU (03978), NEW ORIENTAL-S (09901), CHINA EAST EDU (00667), etc.