Another industry sector in China is very close to boost.

As a matter of fact, China's education sector may obtain access to the domestic stock market, by reason of an amendment of the law on the promotion of nongovernmental education.

The Standing Committee of the National People's Congress is about to discuss a reform that may be effective in early next year. This reform would allow educational companies to choose whether they operate as nonprofit entities or as commercial companies and will remove the prohibition on listing of commercial education companies.

This kind of new regulation could open the business of education for the coming years. Official statistics show that China's education industry market was about 6.8 trillion yuan in 2015; however, there were only 23 education-related companies listed on A-share market as of the end of this June, and their main businesses is not teaching, but textbook publication.

This review of competent regulations is aimed also to avoid what happened in the past years, when leading companies in the teaching sector, like New Oriental, 51talk and Tomorrow Advancing Life, all transferred to US stock markets. 

For more information: asiandesk@blblex.it