The Zhitong Finance App learned that education stocks continued to rise in early trading. As of press release, Yuhua Education (06169) rose 8.79% to HK$0.495; New Higher Education Group (02001) rose 4.13% to HK$2.52; China Oriental Education (00667) rose 4.12% to HK$2.53; and China Education Holdings (00839) rose 3.68% to HK$4.23.

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”. According to the Dongwu Securities Research Report, this shows that the regulatory authorities 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.

Some agencies also pointed out that compared to the previous “double reduction” document, this new regulation removes “high school reference implementation”, which is an important policy reassurance pill. In addition, “Out-of-school training is managed according to subject and non-subject categories”; “Guiding non-subject out-of-school training institutions to participate in after-school services in schools” has been added. The introduction and implementation of non-subject concepts is an important means of guiding institutional transformation, meeting reasonable needs, and enriching the supply of education. In the future, education and training institutions should carry out non-subject training in a compliant and reasonable manner under supervision, and continue to improve in cooperation with inspection and supervision.