China's State Council Employment Promotion and Labor Protection Leading Group has unveiled the "Guidance on Large-Scale Vocational Skills Enhancement Training," targeting critical talent shortages in manufacturing and services from 2025 through 2027. Dubbed "Skills Illuminate the Future," the initiative will provide subsidized training for over 30 million workers in high-tech industries, urgent sectors, and key demographic groups to boost skill-based employment and income growth.

Simultaneously, Shanghai prepares a three-year education strengthening blueprint emphasizing modern vocational system development, deeper industry-academia integration, and enhanced governance to empower new productive forces. Guangzhou has concurrently released implementation guidelines to cultivate high-skilled talent, advocating vocational-general education integration and industry-education synergy.

The 2025 Government Work Report further expands inclusive education through free preschool rollout, increased high school placements, and vocational-academic pathway integration. Education Minister Huai Jinpeng reinforced this momentum during the March 5 National People's Congress session, pledging measured expansion of elite university enrollment alongside significant vocational education enhancements.

Key Hong Kong-listed vocational education players include:

- China East Education (00667.HK): Nationwide trainer offering culinary, IT, automotive, and beauty programs. - South China Vocational Education Group (06913.HK): Operates Guangdong Lingnan Institute of Technology and Lingnan Modern Technician Institute, recently restructuring into eight specialized colleges while adding optometry and dental technology programs across 40+ disciplines. - China Chunlai Education Group (01969.HK): Central China's largest private higher education provider with 104,000 students across six vocational schools, positioned to benefit from Henan's 2025 target of 60% higher education enrollment and manufacturing upgrade initiatives. - Zhonghui Group (00382.HK): Reported 21.7% higher vocational education revenue growth in H1 FY2024, driving 84.9% of total income as student numbers surged by 10,000 to 96,000. - Fenbi (02469.HK): Its AI test-prep system achieved RMB14 million sales within two months, attracting 40,000 paid users with projected annual revenue exceeding RMB100 million. - Dongruan Ruixin Group (09616.HK): Education resources revenue jumped 14.9% to RMB220 million in 2024 through partnerships with 133 institutions, while newly launched "Dongruan Phoenix Academy" targets elderly learners with AI-art and health programs.