10-07-2019

The State Council issued a new guideline tightening the regulation over compulsory education, covering public and private schools providing compulsory education services from preschool to grade 12 middle school education (K-12 education). The new guideline will tighten the regulation on the use of teaching materials as well as the student admissions. The rule stated that any unauthorized teaching materials are prohibited from using. The use of foreign curricula and textbooks is also forbidden. Furthermore, the rules also require local governments and the relevant authorities to centralize and manage the standard for the admission process for both public and private schools. The new rules may negatively affect the quality of curricula and therefore the relative attractiveness of the services provided by private schools as reputable and leading private schools operate bilingual international school in western educational philosophies. Private schools student admissions currently take place earlier than that of public schools and they usually gain partial control over the enrollment process. However, private schools may lose comparative advantages to student admission as both the public and private school begin recruitment simultaneously. On the contrary, higher and vocational education providers currently have little impact from the new guideline.

Reference:
Bloomberg, The State Council

General Disclosure and Disclaimer
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.