Bright Scholar Education’s share price in Hong Kong plummeted by more than 40%, and New Oriental Hong Kong’s share price continued to plummet by nearly 40%.

The A-share education index fell nearly 10%, and the Hang Seng Technology Index fell nearly 6%, reaching its lowest level in nearly a year.

　　Hong Kong stocks fell sharply after the opening on Monday, and the education sector plummeted.

As of midday, Bright Scholar Education’s share price in Hong Kong has plummeted by more than 40%, and New Oriental Hong Kong’s share price has continued to plummet by nearly 40%.

From the index point of view, the China Securities Education Index fell by nearly 10%, and the Hang Seng Technology Index fell by nearly 6%, reaching its lowest level in nearly a year.

The days for institutions to make money with their eyes closed are over

　　The "Double Minus Opinion" prohibits any form of counselling for preschool children in the name of "thinking training", such as English teaching.

The regulations will also apply to off-campus education for high school students.

　　The introduction of this policy aims to significantly reduce the extracurricular burden of students and the financial burden of families on the one hand, and on the other hand, it will also help partially alleviate the current low birth rate.

　　After a series of heavy policy "combination punches" came out recently, the private education and training industry has disappeared, and the stock prices of related listed companies have fallen.

　　A Chinese investor in a private international education group told a reporter from China Business News: "Originally, there was a listing plan, but now there may be a risk of bankruptcy." He revealed that the school's current main source of income is tuition, and it already has strong profitability. .

　　Driven by the surge in demand, the education technology industry is booming and has become a "money cow" in the rise of China's new consumption.

Statistics show that in the last year alone, as much as US$10 billion in venture capital poured into China’s education technology industry, spawning hundreds of start-ups, applications and education technology platforms, providing everything from K12 tutoring to elementary school mathematics , Language skills and music education services.

　　The consulting agency Frost & Sullivan estimates that in 2021, the market size of China's education technology industry will exceed 800 billion yuan, which will cause huge cost pressure and financial burdens on young families.

　　Among them, language training is one of the fastest growing areas in extracurricular tutoring. The market size has increased from 377.5 million yuan in 2015 to 619.1 billion yuan in 2019.

According to the listing prospectus of New Oriental Education, the total number of K12 tutoring students nationwide has increased from 202.6 million in 2015 to 325.3 million in 2019.

The rectification curtain is fully opened

　　It's not surprising that the boots landed.

During the two sessions this year, the proposals made by representatives and committee members amplified the society's attention to chaos in the training industry. At that time, the market warned that a new round of reorganization of national education and training institutions might be fully carried out.

CITIC Securities believes that the macro background of the new round of rectification of training institutions is that the burden on parents continues to be heavier, and public opinion continues to pay attention to the issue of education equity, and the rectification may have already been brewing.

　　When answering a reporter’s question on the “Double Reduction Opinions”, the person in charge of the Ministry of Education stated that there are still some fundamental problems that have not been resolved in the governance of off-campus training institutions. Violations of regulations are prominent, seriously damaging the legitimate rights and interests of the people; third, the situation of being encumbered by capital is serious, destroying the normal ecology of education.

In the future, the state will further improve relevant laws, regulations and systems in response to new situations and new problems in the management of off-campus training institutions.

　　In recent years, some institutions have blindly expanded, and even invested or speculated tuition fees, which has attracted widespread attention from the society.

In May of this year, the Beijing Municipal Education Commission, Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People’s Bank of China, and the Beijing Banking and Insurance Regulatory Bureau jointly issued the "Beijing Municipal Disciplinary Off-campus Training Institutions Pre-charge Management Measures (Trial)", requiring adoption The bank depository model carries out fund supervision.

　　According to regulations, financial regulatory authorities must regularly share information and risk information on pre-charged funds with education administrative departments; depository banks must implement normalized monitoring of pre-collected funds in depository, and if there is any change in pre-charged funds, they must promptly report The administrative department prompts.

The bank depository model has raised the entry barrier and survival pressure of the K12 discipline training market from a capital perspective.

　　Shanghai will also introduce a series of new policies on the supervision of off-campus training institutions, including the "Shanghai Municipal Private Training Institutions Fees Management Measures", through the introduction of third-party payment and insurance mechanisms, to prevent institutions from damaging consumer interests when funding problems occur.

　　Author: Qian Tongxin