The State Council of China has announced stringent new measures on school curriculum and private school ownership, the latest in measures aimed at harnessing the country’s rapidly growing education sector.
The new law, which came into effect on Sept. 1, halts the teaching of foreign courses in schools from kindergarten to grade 9 (K-9) and prohibits foreign entities from owning or controlling schools. Any private K-9
China currently has private K-9 schools that teach both local and international courses. Typically, a ninth grade student in China is 15 or 16 years old.
Members of the committee or other decision-makers in private K-9 schools must be Chinese nationals and must be represented by the governing body according to the Private Education Promotion Act published Friday on the government website.
K-9 schools will no longer be able to hold entrance exams or early recruitment. They are forbidden from establishing a private school or converting into a private school.
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This new law “It is stricter than expected for compulsory education schools (K-9 schools), particularly in prohibiting transactions with connected parties altogether, and K9 private schools are out of control by the agreement,” said US bank Citi. Research notes to clients on Sunday.
Citi said it expects the revenues and profits of most K12 players to be “under challenge” as a result of the new law.
($ 1 = 6.4308 Chinese yuan
Our Standard: The Thomson Reuters Trust Principle.