The analysis pointed out that Xi Jinping’s authorities wanted to reduce the cost of family living to increase the fertility rate. (Image source: Getty Images)
[See China July 25, 2021](See a comprehensive report by Chinese reporter Li Zhengxin) Chinese state media said on July 24 that the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council targeted off-campusTrainingIssue documents.The market value of Chinese training institutions listed in the U.S. instantly evaporated by US$16 billion. The analysis indicated thatXi JinpingThe authorities want to reduce the cost of family living to increaseFertilityrate.
On the evening of July 24th, Hong Kong and Taiwan time, the Chinese state media Xinhua News Agency reported that the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council recently issued the “Opinions on Further Reducing the Burden of Students’ Work and Off-campus Training in Compulsory Education.” All regions and departments conscientiously implement it in light of actual conditions.
The document shows that the purpose is to “continue to standardize off-campus training (including online training and offline training), and effectively reduce the burden of excessive homework and off-campus training for students in compulsory education”.
The outside world believes that the document sets up a series of terrible restrictions on various training institutions. For example, national statutory holidays, rest days, and winter and summer vacations must not be used to organize subject training; high salaries must not be robbed of school teachers; listed companies must not pass Stock market financing and investment discipline training institutions; the training time shall not be later than 21 o’clock.
The document also announced that local governments at all levels will no longer approve new off-campus training institutions for the compulsory education stage, and change the approval system to the original training institutions. All provinces must conduct a comprehensive investigation of online discipline training institutions and strictly handle approval procedures in accordance with standards.
The above news triggered the capital market to fully sell the stocks of related listed companies, and China’s education and training listed companies have suffered a rare setback.
On July 23, the market value of New Oriental and Gaotu Online, which was listed in the United States for a good future, instantly evaporated 16 billion U.S. dollars. Before that, their total market value exceeded 26 billion U.S. dollars. Among them, the bright future with the largest market value will be more affected. It has 990 education centers in 102 cities in China and employs 45,000 employees.
This move by Xi Jinping’s administration is tantamount to dashing hopes of similar educational institutions-“Ape Guidance” and “Job Gang” in the US or Hong Kong IPO (initial public offering).
Prior to June 1, Xi Jinping authorities also issued a huge fine of RMB 36.5 million to 15 education and training institutions.
“Bloomberg” quoted Wu Yuefeng, manager of the capital management company, as saying that “turning this industry into a non-profit industry is equivalent to completely eliminating this industry.”
Wu Yuefeng said: “The financial regulations are too surprising, which shows that for the authorities, this is definitely not a trivial matter. In the short term, any news about this industry will be bad news.”
According to a report by “Voice of America”, observers pointed out that this round of corporate rectification is exactly the same as the government’s rectification of Chinese Internet companies. It is nominally anti-monopoly or to reduce the burden on students, but it is actually aimed at cracking down on private enterprises and robbing enterprises of their wealth. And resources, so as to completely eliminate these unstable factors independent of the CCP.
Prior to this, Alibaba Group, Ant Financial, Tencent, Baidu, Didi Chuxing, etc. have all been purged by the regulatory authorities, and they have also been fined by the government to varying degrees.
Ren Zhongdao, a researcher at Tianjun’s Political and Economic Think Tank, pointed out that in the highly hierarchical CCP’s officialdom, you can tell from the names of its institutions. Even institutions of the same level have higher or lower levels. For example, the leading group is higher than the coordination group. . As the highest party and government work organization of the CCP, the documents jointly issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council directly represent Zhongnanhai’s intentions. This is equivalent to destroying the education and training industry in a “one size fits all” manner, which may be related to the previous news that promoted the public’s fertility.
After China’s seventh national census data was released, multiple studies found that its report was full of loopholes. Even so, the declining fertility rate is an indisputable fact. It is reported that the authorities are drafting new regulations to stop the extracurricular tutoring market with a scale of more than 800 billion yuan, and increase the fertility rate by reducing the cost of family living.
According to a report by “Reuters” on May 12, China’s after-school training industry is booming, but sources said that Beijing authorities are drafting new stricter regulations to curb it, and increase the fertility rate by reducing the cost of family living.
However, many education experts said that the Beijing authorities will not use a one-size-fits-all approach to destroy the after-school tutoring market. Ultimately, they still need to promote the reform of the education system and break the point-only theory, so as to fundamentally alleviate the anxiety of Chinese parents about educating their children.
Three people familiar with the matter who did not want to be named said that on-campus tutoring classes and weekend tutoring classes will soon be banned; especially during the working day, English and math tutoring should be reduced, so that students who lack sleep can be better protected, and Provide economic motivation for parents to have more children.
“It is extremely urgent to reduce the burden on students and reduce the financial burden on their parents. Nowadays, couples are increasingly reluctant to have more children,” a source said.
Editor in charge: Xin He Source: Look at China
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