China's educational sector is experiencing a revival of sorts after a long period of hardship. Fueled by a variety of factors-the strengthening of the middle class and government intervention, particularly the Chinese educational system has improved, and it's only going to get better.
Forbes reports that the educational sector underwent a trial of sorts in August. Educational stocks in the Hong Kong Stock Exchange suffered from a 30% deficit in share prices, largely due to measures that were introduced to control regulation. This led to an uncertain outlook in the case of the industry-some concerns, however, are said to be overblown.
This predicament was set off by regulations imposed by the Ministry of Justice last month. These regulations included restrictions on who could invest in schools, which had been a popular investment tool for people who have been following China's school system at the moment. According to these restrictions, no 'groups' or educational firms are allowed to get agreements unless-in the case of non-profit school-they gain approval.
There are a lot of improvements that investors should expect to see when China enforces the regulation of these laws. Some of these include the promotion of quality education which everyone can access as well as making better use of the public funds for education as well as the re-direction of where these public funds go, and to what extent.
It's always been China's intent that education should be given top priority in policymaking. A recent circular was even passed, according to Xinhua Net, by the General Office of the State Council. It contains a directive to give priority to education and to improve educational spending and how it is used. Even where these funds are used, and how, should be explained clearly, according to the directive.
The Council is encouraging everyone to get involved. It is looking for funds for personal and public donations, educational foundations, as well as schools which are classified 'private.' The subsidy for schools under the government program, meanwhile, will also get a boost under the improved regulations.
The document further encouraged improvement for the salary of teachers. With investors being regulated, the salaries of compulsory, primary, and junior middle educators would be given more priority. Pay that is not only better but also equal, is the target for these educators through proper use of the funds collected through better policies.
