Analysis of Industry Policies and Market Factors Behind the Surge of Jiahong Education (01935.HK)

Jiahong Education (01935.HK) surged by more than 35% from December 22 to 23, 2025, while driving up other education sector stocks such as China Xinhua Education (02779.HK) and China Kede Education (01890.HK) by 25% and 15% respectively, forming a collective strength trend in the education sector [1].

From the industry perspective, the education industry is experiencing a policy inflection point, with significantly improved cash flow conditions. In Q3 2025, the average cash collection ratio of the education industry reached 105.64%, indicating strong cash recovery capabilities of enterprises. The operating cash flow of some enterprises has exceeded the full-year level of 2024, providing a solid financial foundation for enterprise development [2].

In terms of policy environment, the “Document on Supporting the Classification Management Reform of Existing Private Undergraduate Schools in Guangdong Province (Draft for Comments)” issued by the Guangdong Provincial Department of Education clarifies the classification registration process for existing private universities, releasing positive policy signals and enhancing market confidence in the policy certainty of the education industry [3].

At the market level, the overall bull run of the Hong Kong stock market in 2025, especially the outstanding performance of small and medium-cap stocks, also provided macro market support for the rise of education stocks like Jiahong Education [4].

1. Industry Development Model Transformation
   : The education industry has shifted from “external merger expansion” to “connotative development”, focusing more on improving operational efficiency and teaching quality. This transformation is conducive to the long-term stable development of enterprises [3].
2. Sustainability of Policy Impact
   : The introduction of the classification management reform policy for private universities in Guangdong may trigger similar policies in other regions, bringing sustained policy dividends to the entire education industry.
3. Significance of Cash Flow Improvement
   : The significant improvement in cash flow conditions of education enterprises not only enhances their risk resistance capacity but also provides space for business expansion and value enhancement.

• Development opportunities brought by the policy inflection point in the education industry; enterprises are expected to achieve further growth with policy support.
• Under the connotative development model, the improvement of operational efficiency and teaching quality will enhance the core competitiveness of enterprises.
• The bull run of the Hong Kong stock market provides a favorable market environment for education stocks.

• The effect of policy implementation still needs to be observed, and there is a risk that policy execution may not meet expectations.
• The education industry is highly competitive, and enterprises need to continuously improve their strength to meet challenges.
• The Hong Kong stock market is highly volatile, and stock prices may fluctuate due to market sentiment.

The sharp rise of Jiahong Education (01935.HK) is the result of the combined effects of the policy inflection point in the education industry, the transformation of industry development model, the improvement of cash flow, and the bull run of the Hong Kong stock market. Positive policy signals have boosted market confidence, operational improvements at the industry level have enhanced enterprise value, and the bull run at the market level has provided momentum for stock price increases. Investors should pay attention to policy implementation, industry development trends, and enterprise operational conditions to comprehensively evaluate investment opportunities and risks.