The Zhitong Finance App learned that education stocks rose again. As of press release, Guangzheng Education (06068) rose 16.95% to HK$0.345; New Higher Education Group (02001) rose 5.45% to HK$2.32; Tianli International Holdings (01773) rose 3.26% to HK$3.17; and New Oriental-S (09901) rose 2.08% to HK$71.3.

According to the news, on the evening of February 8, the Ministry of Education issued a draft for comments on the “Regulations on the Administration of Out-of-School Training”, which clearly regulates some specific models of operation in the education and training industry. Since the announcement of the “Double Reduction in Education and Training” policy in 2021, the Ministry of Education once again issued management regulations for the education and training industry. Dongwu Securities believes that this shows that regulators do not have a negative attitude towards the education and training industry, but rather require the industry to operate more standardized and operate, and education and training enterprises that meet the requirements of the regulations are also expected to continue to develop.

Tianfeng Securities said that in the past two years, leading institutions have accelerated non-disciplinary transformation and gradually opened new outlets, etc., all of which are positive signs of the industry. The bank believes that it has been three years since the double reduction. On the one hand, it is necessary to clarify the effects of the double reduction, and on the other hand, it is also necessary to promote standardization and rule of law in the governance of out-of-school training; this opinion draft clarifies the basic position of out-of-school training as a useful complement to school education, and faces up to parents' reasonable training needs.