By Sidney Qin King & Wood Mallesons’ FDI Group
Deloitte predicts the private education sector will reach a market size of RMB640bn (US$102bn) by 2015. This growth is likely a response to rising income levels, which fosters the demand for high-quality private education. In 2013, China relaxed its decades-long one-child policy, allowing couples to have two children if one of the parents is an only child, which greatly bolsters the potential demand for private education like pre-school education and after-school tutoring. Up to now, education has been a valuable hot land of investment, but it is not easy for private investors to enter into the market, particularly foreign investors, because of legislation that treats education as a form of public welfare. But recent legislative developments look set to change this. Although no new national laws or regulations have yet been promulgated, recently-released draft legislation and newly promulgated local regulations suggest that the dawn of private educational institutions is approaching.
Continue Reading The Dawn of Private Educational & Training Institutions