Why is K12 Private Education Getting Popular in China?

Private education in China has experienced a rapid growth recently and become a significant segment of the overall education market. Compared to public schools, it is considered as a better quality option for the rising middle-class population, because some public schools admit students based on the proximity of their family home instead of their meritocracy.

(Source:  DataYes   RoboR   Research Platform , Frost & Sullivan, Bexcel Management Consultants, Northeast Securities )

(Source: DataYes RoboR Research Platform, Frost & Sullivan, Bexcel Management Consultants, Northeast Securities )

In the meanwhile, China's private after-school tutoring service for K-12 is also rapidly expanding. This is because the parents believe those who study earlier and more will finally stand out in the college entrance exam to compete with nearly 10 million high school graduates. Therefore, they send their children to private after-school tutoring sessions even from kindergarten. It is estimated that the private K12 after-school tutoring market will double its size in five years. 

(Source:  DataYes   RoboR   Research Platform , Frost & Sullivan, Bexcel Management Consultants, Northeast Securities )

(Source: DataYes RoboR Research Platform, Frost & Sullivan, Bexcel Management Consultants, Northeast Securities )

In addition, Chinese government is encouraging private investment in the education industry as well. According to the guideline released by The State Council, investment into private education should be made easier, and there should be multiple channels from which private schools can source funding. Thanks to the favorable policies and increasing demand, private education has now become the most profitable segment of the education market. 

(Source:  DataYes   RoboR   Research Platform , Local Ministry of Educatio, Guangzhou Guangzheng Hang Seng Securities )

(Source: DataYes RoboR Research Platform, Local Ministry of Educatio, Guangzhou Guangzheng Hang Seng Securities )