The Zhitong Finance App learned that Yuhua Education (06169) rebounded more than 7%. As of press release, it had risen 7.41% to HK$0.58, with a turnover of HK$3.66 million.
According to the news, the Ministry of Education recently issued the “Regulations on the Administration of Out-of-School Training (Draft for Comments)”. It mentions various aspects, such as extracurricular training for students in compulsory education. Government-guided price management should be implemented in accordance with the law, and provincial people's governments should formulate fee management measures. Fees for other off-campus training shall be reported to the approval authority for the record.
Guoxin Securities believes that the “Draft for Solicitation of Comments” is the first administrative regulation issued by the country on the management of out-of-school training, combining 2 years of practical experience at the grassroots level. The opinion draft continues the statement that the “double reduction” policy was intended to reduce the burden of compulsory education subject training. The level of supervision is basically the same, and there is no marginal tightening. Furthermore, the classification management rules encourage non-subject training business formats, affirm the transformation results of existing leading education and training institutions, and also point out the direction for the future development of the industry.
The bank said that from the initial “double reduction” policy to the current “Draft for Solicitation of Comments”, the original purpose of the national legislation was not to completely eliminate out-of-school training, but to guide the high-quality development of the out-of-school training industry with a view to creating a good educational ecosystem. Considering the clear and positive attitude of the new policy, the education and training industry is expected to continue to benefit from improved fundamentals and the rebound in valuations driven by sentiment.