According to the Zhitong Finance APP, the General Office of the State Council recently issued the &#34;Opinions on Gradually Implementing Free Preschool Education.&#34; Starting from the autumn semester of this year, the annual care education fee for children in the kindergarten senior class will be waived, with the funds shared by the central and local finances. The details of how the central financial contribution will be managed have been finalized. On August 11, the Ministry of Finance and the Ministry of Education revised and issued the &#34;Management Measures for Supporting the Development of Preschool Education Funds,&#34; which will take effect from the date of issuance.
The &#34;Management Measures for Supporting the Development of Preschool Education Funds&#34; states that the policy of waiving care education fees for preschool education will be implemented. The care education fees for children in public kindergartens who meet the criteria will be waived. For age-appropriate children attending private kindergartens approved by the education department, corresponding reductions will be provided based on the fee waiver levels of local public kindergartens of the same type.
The &#34;Management Measures for Supporting the Development of Preschool Education Funds&#34; also mentions subsidy funds for waiving care education fees. The funds required for the nationwide implementation of the care education fee waiver policy will be jointly borne by the central and local finances. The central finance will determine the financial subsidy standards for waiving care education fees for each province, the number of children in kindergartens, and the sharing ratio between the central and local finances. The sharing ratios are as follows: for the first tier, the central finance bears 80%; for the second tier, 60%; and for the third, fourth, and fifth tiers, 50%.
Recently, Professor Jiang Quanbao from the School of Labor Economics at Capital University of Economics and Business analyzed that gradually implementing free preschool education is also part of improving the framework of China's fertility support policy system, which alleviates the economic burden on families raising children and reduces education costs. This plays an important role in building a fertility-friendly society and a child-rearing-friendly atmosphere for the entire society.
Data shows that in 2023, the total investment in preschool education nationwide reached 538.2 billion yuan, with families bearing about 36% of the costs. Education expenditure accounts for a high proportion of total household expenditure in China, and free preschool education can reduce family burdens, lower child-rearing costs, and stimulate the birth rate. By 2024, the proportion of inclusive kindergartens nationwide is expected to reach 87.26%, with an inclusive rate of 91.61% for children in kindergartens and a gross enrollment rate of 92%. However, there is still an imbalance in development between urban and rural areas, and children from low-income families in rural areas of central and western China still face limited access to kindergartens. Implementing free policies can significantly benefit this group and promote educational equity.
The fertility support system is a combination of measures, including child-rearing subsidies, education, and childcare, requiring long-term comprehensive policies. Currently, the fertility support system is continuously being improved.
Recently, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the &#34;Implementation Plan for the Child-Rearing Subsidy System,&#34; which will provide subsidies for infants and young children under three years old who are born in accordance with legal regulations starting from January 1, 2025, until they reach three years old. The child-rearing subsidy will be issued annually, with the current national basic standard set at 3,600 yuan per child per year.
In addition, enterprises have also played an important role in building a fertility-friendly society. According to media reports, since 2021, more than ten companies have announced measures to encourage employees to have children, including Miniso, Ctrip, Qunar, Da Bei Nong, Qiao Yin Co., Ltd., Kuaishou, Qiao Long Emergency, Far East Group, Sanqi Interactive Entertainment, Miniso, XPeng, and Jing Brand
CITIC Securities stated that on August 5th, the General Office of the State Council issued the &#34;Opinions on Gradually Implementing Free Preschool Education,&#34; which clearly states that from the autumn semester of 2025, the childcare education fees for children in public kindergartens will be waived. The institution believes that this opinion is a concrete implementation of the &#34;exploration of gradually expanding the scope of free education&#34; mentioned in the Third Plenary Session of the 20th Central Committee and this year's government work report, reflecting this year's policy orientation of &#34;people's livelihood as a priority.&#34; Breaking down the policy details, the main upgrades include expanding the coverage from &#34;disadvantaged groups&#34; to &#34;all children in kindergartens,&#34; as well as a financial expenditure mechanism with &#34;tiered responsibilities&#34; between the central and local governments and dynamic adjustments. Under a neutral assumption, it is estimated that the free preschool education policy may require an annual financial investment of about 45 billion yuan, which may come from the rapidly growing central government education expenditure this year. Subsequently, it is expected that there will still be room for gradual expansion of free preschool years.
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00839

09901

The Ministry of Finance and the Ministry of Education have revised the "Measures for the Management of Funds Supporting the Development of Preschool Education," which will take effect on August 11, implementing the policy of exempting childcare education fees. Starting from this autumn semester, children in public kindergartens who meet the criteria will be exempt from childcare education fees, while children in private kindergartens can enjoy corresponding reductions. This policy aims to alleviate the economic burden on families and promote the birth rate, with an expected proportion of inclusive kindergartens nationwide reaching 87.26% in 2024

Zhitong

CHINA EDU GROUP

New Oriental EDU & Tech

NEW ORIENTAL-S

Hong Kong Stock Concept Tracking | The latest documents from two departments! Related to preschool education funding, these targets are expected to benefit from policy deployment (with concept stocks attached)