Since August, China's education regulatory policies have been introduced frequently, which has attracted high attention of education industry and directly affected education stocks in the capital market. Xiong Bingqi, deputy director of 21st Century Education research Institute, told that the intensive introduction of relevant regulatory policies is for education department to promote the normative development of education institutions, as well as for implementing lawbased governance of education. It also helps to make up for the shortcomings of certain previous regulatory policies.
Meanwhile, an official document released on August 27 proposes that the government's fiscal expenditure of education should not be less than 4% of GDP. And the further discussion on how to balance the profitability and public welfare of education industry will continue.