China's education stocks continued their gains. As of press release, Gaotu had risen nearly 6%
The Zhitong Finance App learned that on Thursday, China's education stocks continued to rise. As of press release, Gaotu (GOTU.US) had risen nearly 6%, New Oriental (EDU.US) had risen more than 3%, and Good Future (TAL.US) had risen more than 1.8%. According to the news, the Ministry of Education recently issued the “Regulations on the Administration of Out-of-School Training (Draft for Comments)” to further regulate out-of-school training following the “double reduction” policy. Tianfeng Securities believes that the “Draft for Solicitation of Comments” clarifies the basic position of out-of-school training as a useful complement to school education, and that the policy is favorable. According to the bank, leading institutions have accelerated non-subject transformation and gradually opened new outlets in the past 2 years, all of which are positive industry signals; it is now the third year 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 paper clarifies the basic position of out-of-school training as a useful complement to school education, and faces up to parents' reasonable training needs.