Policy Overview - The State Council has issued a policy to gradually implement free preschool education, starting from the autumn semester of 2025, exempting public kindergartens from charging care education fees for the last year of preschool[1] - This policy is expected to benefit approximately 12 million children and reduce family education costs by 20 billion yuan in the 2025 autumn semester[1][7] Financial Implications - The financial burden on families will significantly decrease as care education fees constitute a large portion of preschool education expenses[7] - The central government will cover 80%, 60%, and 50% of the care education fee for children in western, central, and eastern regions, respectively[2] Educational Impact - The initiative aims to bridge the resource gap in preschool education between urban and rural areas, ensuring access for vulnerable groups such as migrant and disabled children[1][9] - The policy aligns with the United Nations' 2030 Sustainable Development Goals, which advocate for at least one year of free, quality preschool education[2] Implementation and Monitoring - Local governments are required to complete preparations by the end of August 2025 to ensure that children can benefit from the policy at the start of the school year[1][7] - The central government will regularly assess the implementation of the policy and adjust financial support standards based on local conditions[8][12] Future Considerations - The policy is seen as a first step towards broader educational reforms, focusing on improving the quality and accessibility of preschool education across different regions[3][10] - The overall enrollment rate for preschool education is projected to continue rising, with the gross enrollment rate reaching 92% by 2024, a significant increase from 2012[11]

Core Viewpoint - The implementation of free preschool education policy is set to reshape the kindergarten industry landscape, particularly affecting private kindergartens as enrollment numbers decline and public kindergartens offer free care fees starting from the 2025 fall semester [1][2][5]. Group 1: Policy Changes - The Ministry of Finance and the Ministry of Education have revised the funding management measures to support preschool education, focusing on improving quality and implementing free care fees for public kindergartens [1]. - Starting from the 2025 fall semester, public kindergartens will exempt care fees for children in their last year, impacting approximately 12 million children [2][5]. - The total financial investment for the free education policy is estimated to be around 20 billion yuan, with an average monthly care fee reduction of approximately 340 yuan per child [5]. Group 2: Impact on Private Kindergartens - The decline in enrollment numbers and the introduction of free care fees pose significant challenges for high-priced private kindergartens, which must adapt to maintain their student base [1][8]. - Many private kindergartens are considering lowering the age of enrollment to attract younger children, as over 30% of families with children under three express a need for childcare services [8][9]. - The competition between public and private kindergartens is expected to intensify, particularly as public kindergartens offer free services while private institutions may struggle to provide competitive pricing [4][5]. Group 3: Operational Challenges - High-priced private kindergartens face operational pressures due to the new policy, with concerns about the timely allocation of funds and potential impacts on daily operations [4][10]. - The financial burden on private kindergartens may lead to increased closures, particularly among those that do not receive subsidies under the new policy [5][11]. - The need for quality assurance in education remains critical as the transition to free preschool education progresses, with calls for maintaining investment in teacher training and facility standards [11].

Core Viewpoint - The upcoming implementation of free preschool education policy is expected to significantly impact the preschool education sector, particularly affecting private kindergartens as public kindergartens will have their childcare fees waived starting from the fall semester of 2025 [2][3][4]. Group 1: Policy Implementation - The Ministry of Finance and the Ministry of Education have revised the funding management measures to support preschool education development, focusing on improving quality and implementing free childcare education fees [1]. - Starting from the fall semester of 2025, public kindergartens will waive childcare fees for children in their final year, which is anticipated to benefit around 12 million children [4][6]. - The total financial investment for this policy is estimated to be around 20 billion yuan, with an average subsidy of approximately 1,700 yuan per child for the semester [6]. Group 2: Impact on Private Kindergartens - The introduction of free education policies, combined with a declining enrollment in kindergartens, is reshaping the competitive landscape for private kindergartens, particularly those with higher tuition fees [3][4]. - The number of private kindergartens has decreased from 173,200 in 2019 to 135,500 in 2024, with a corresponding drop in enrolled children from 26.49 million to 15.08 million [7]. - High-end private kindergartens are exploring strategies to adapt, such as lowering the age for enrollment to attract younger children, as there is a significant demand for childcare services among families with children under three [8][9]. Group 3: Quality and Competition - The competition between public and private kindergartens is expected to intensify, as public kindergartens will have lower fees, prompting parents to prefer them over private options [5][6]. - The average number of children per teacher in kindergartens has improved, which may enhance teaching quality, but also raises concerns about the financial sustainability of private institutions [10]. - Some high-end kindergartens are focusing on specialized curricula to attract affluent families, indicating a potential shift towards more differentiated educational offerings [12].

Core Viewpoint - The recent policy on free preschool education in China aims to balance educational equity and fiscal sustainability, starting from the 2025 autumn semester, by eliminating care and education fees for public kindergartens for the last year of preschool [1] Group 1: Policy Implementation - The policy will focus on reducing the financial burden on families by eliminating care fees while retaining flexible expenses like meal and transportation fees [2] - A three-tiered financial responsibility system will be established, with central, provincial, and local governments sharing the fiscal burden, particularly supporting underdeveloped regions [2] - The implementation will be gradual, starting with one year of free education in 2025, with plans to expand to two and then three years based on readiness [2] Group 2: Inclusivity and Equity - The policy emphasizes high-quality inclusivity rather than a one-size-fits-all approach, ensuring that support is tailored to regional differences and vulnerable groups [3] - A dynamic adjustment mechanism for subsidies linked to regional financial capabilities will help address disparities in educational access [3] - Special provisions will be made for economically disadvantaged children, orphans, and disabled children, ensuring comprehensive support [3] Group 3: Quality Assurance - The policy aims to ensure that cost reductions do not compromise educational quality by improving teacher salaries and stabilizing the workforce [4] - A robust regulatory framework will be established to oversee the quality of preschool education, with clear responsibilities assigned to local governments [4] - The development of a national preschool education management information system will enhance data management and enable precise governance, ensuring funds are allocated effectively [4]

Core Viewpoint - The implementation of free preschool education policy starting from the autumn semester of 2025 is backed by significant fiscal subsidies from the central government, indicating a shift in financial responsibility from families to the government [1][3]. Summary by Sections Policy Changes - The revised "Support for Preschool Education Development Fund Management Measures" includes a new purpose to "implement the policy of exempting childcare education fees," indicating an increase in budget allocations for preschool education [1][2]. Financial Implications - The central government's budget for preschool education development funds is set at 25 billion yuan for both 2023 and 2024, while the national fiscal education expenditure for 2023 is 5 trillion yuan, with preschool education accounting for 315 billion yuan [2][3]. - The estimated increase in national fiscal expenditure due to the exemption of childcare education fees is approximately 20 billion yuan for the upcoming autumn semester, potentially rising to 40 billion yuan for the 2025 academic year [3]. Regional Disparities - Different provinces will experience varying levels of financial support based on the number of eligible children and local fiscal conditions, with Guangdong, Shandong, and Henan being the major beneficiaries of the policy [1][9][12]. - Guangdong is identified as the largest beneficiary of the free childcare education fee policy due to its high number of enrolled children and economic development [12][13]. Family Financial Impact - The policy aims to reduce the financial burden on families, as evidenced by a parent’s experience where the monthly childcare fee decreased significantly after transitioning to a public preschool [5][6]. - Despite potential increases in public preschool fees in some regions, the overall financial support from the government is expected to outweigh these increases, leading to a net benefit for families [5][6][7]. Government Responsibility - The shift from family financial responsibility to government funding is characterized as a "reduction" in family education expenses and an "increase" in government responsibility [2][3][4]. - The overall increase in government funding for preschool education has outpaced the rise in family contributions, indicating a growing commitment to improving preschool education services [7][8].

Core Viewpoint - The implementation of free preschool education policy will begin in the autumn semester of 2025, supported by significant fiscal subsidies from the central government [1][3]. Summary by Relevant Sections Policy Changes - The Ministry of Finance has revised the "Support for Preschool Education Development Fund Management Measures," adding the purpose of "implementing the policy of exempting childcare education fees" [3][4]. - The budget for preschool education development funds will significantly increase, with the central government covering a substantial portion of the costs [1][5]. Financial Implications - The central government's budget for preschool education development funds is set at 25 billion yuan for both 2023 and 2024, with an estimated increase in national fiscal expenditure of approximately 20 billion yuan for the upcoming autumn semester [5]. - The implementation of free education is expected to increase central fiscal support for preschool education by about 80% and national fiscal preschool education funding by approximately 13% [5]. Regional Impact - Provinces such as Guangdong, Shandong, and Henan will receive larger benefits from the policy due to their higher number of eligible children and existing financial structures [1][11]. - Guangdong is identified as the primary beneficiary of the exemption policy, with a significant number of children enrolled in preschool and higher childcare fees compared to other regions [13][14]. Family Financial Relief - The exemption of childcare fees is expected to provide substantial financial relief to families, with some parents reporting significant reductions in monthly fees [7][8]. - However, there are concerns that rising fees in public kindergartens may offset the benefits of the free education policy [7][8]. Overall Educational Funding Trends - National fiscal education funding has increased from 862 million yuan in 2013 to 315 billion yuan in 2023, indicating a growing commitment to preschool education [8][10]. - The increase in government funding has outpaced the rise in family contributions, suggesting a shift towards greater public investment in early childhood education [10].

Group 1 - The State Council has issued an opinion to gradually implement free preschool education, starting from the autumn semester, exempting tuition fees for kindergarten children in their final year, funded by both central and local finances [1][3] - The "Support for Preschool Education Development Fund Management Measures" outlines the implementation of the tuition exemption policy for eligible public kindergartens and provides corresponding reductions for private kindergartens [1][3] - The central government will cover 80% of the costs for the first tier, 60% for the second tier, and 50% for the third to fifth tiers, with the funding based on the number of children enrolled and local standards [1][3] Group 2 - The total investment in preschool education in 2023 reached 538.2 billion yuan, with families bearing approximately 36% of the costs, indicating a high education expenditure burden on households [2] - The proportion of inclusive kindergartens is expected to reach 87.26% in 2024, with an enrollment rate of 91.61% and a gross enrollment rate of 92%, although disparities exist between urban and rural areas [2] - The implementation of free preschool education is part of a broader fertility support policy aimed at reducing the economic burden on families and promoting a fertility-friendly environment [2] Group 3 - Companies are also playing a significant role in creating a fertility-friendly society, with over ten companies introducing measures to encourage employee childbirth since 2021 [3] - The free preschool education policy is seen as a concrete implementation of the government's focus on improving people's livelihoods, with an estimated annual fiscal investment of around 45 billion yuan required [3] - The policy is expected to gradually expand in the coming years, reflecting the government's commitment to enhancing educational accessibility [3] Group 4 - China Oriental Education anticipates a 45%-50% year-on-year increase in net profit for the first half of 2025, driven by a 7% increase in new student registrations and a 10% revenue increase [4] - New Oriental-S maintains a target price of 46 HKD and a "buy" rating, despite a 3% downward adjustment in revenue forecasts for 2026/2027 [4] - China Education Holdings reported a revenue increase of 11.8% to 3.673 billion yuan, although net profit decreased by 9.7%, attributed to increased student numbers and higher operational costs [5]

办好学前教育，关系亿万儿童的健康成长和千家万户的切身利益。日前，国务院办公厅印发《关于逐步 推行免费学前教育的意见》。 学前教育费用怎么免？补助资金从哪里来？幼儿园办园质量如何保障？8月7日，在国务院新闻办举行的 国务院政策例行吹风会上，教育部、财政部有关负责人就公众关心的问题作出解读。 逐步推行免费学前教育，财政投入保障至关重要。 《意见》明确，对因免保育教育费导致幼儿园收入减少的部分，由财政对幼儿园予以补助，所需资金由 中央财政和地方财政共同承担。其中，中央财政对西部、中部和东部地区分别按照80%、60%、50%的 比例分担。 财政部科教和文化司司长许留庆介绍，就财政补助标准问题，今年综合考虑各省公办园保育教育费的生 均实际收费水平等因素，并逐省核定。以后年度，将定期对政策实施情况进行评估，并根据结果调整各 省免保育教育费生均财政补助标准，保障幼儿园正常运转。 距秋季开学不到一个月，如何确保政策落地落实？许留庆表示，财政部已足额安排中央财政需要承担的 免保育教育费补助资金，将于近日下达；还指导各地结合地方实际，分类细化省域内免保育教育费财政 补助标准，尽快制定实施方案，督促地方落实补助资金。同时加强资金监 ...

Group 1 - The State Council has issued an opinion to gradually implement free preschool education, starting from the autumn semester, exempting tuition fees for children in the last year of kindergarten, funded by both central and local finances [1] - The Ministry of Finance and the Ministry of Education have revised the funding management measures to support preschool education, ensuring that eligible public kindergartens will not charge tuition fees [1] - The funding for the tuition exemption policy will be shared between central and local governments, with the central government covering 80% for the first tier, 60% for the second tier, and 50% for the third to fifth tiers [1] Group 2 - The implementation of free preschool education is part of a broader fertility support policy aimed at reducing the economic burden on families and promoting a fertility-friendly environment [2] - In 2023, total investment in preschool education reached 538.2 billion yuan, with families bearing approximately 36% of the costs, indicating a high education expenditure burden on households [2] - The proportion of inclusive kindergartens is expected to reach 87.26% in 2024, with a gross enrollment rate of 92%, although disparities remain in rural and low-income areas [2] Group 3 - Companies are also playing a significant role in creating a fertility-friendly society, with over ten companies implementing measures to encourage employee childbirth since 2021 [3] - The recent policy on free preschool education aligns with the government's focus on improving people's livelihoods and expanding the scope of free education [3] - The estimated annual fiscal investment required for the free preschool education policy is around 45 billion yuan, potentially sourced from the rapid growth in central government education spending [3] Group 4 - China Oriental Education has forecasted a 45%-50% year-on-year increase in net profit for the first half of 2025, driven by a 7% increase in new student registrations [4] - New Oriental has maintained a target price of 46 HKD per share, with a projected revenue growth of 10% and 14% for the 2026/2027 fiscal years [4] - China Education Holdings reported a revenue increase of 11.8% to 3.673 billion yuan, attributed to a rise in student numbers, although net profit decreased by 9.7% [5]

Group 1 - The Chinese government has initiated a policy to gradually implement free preschool education, starting with the exemption of care education fees for kindergarten children in their final year, funded by both central and local finances [1][3] - The "Support for Preschool Education Development Fund Management Measures" outlines the implementation of the fee exemption policy, which applies to both public and approved private kindergartens [1][2] - The financial burden of preschool education on families is significant, with 2023 national preschool education expenditure reaching 538.2 billion yuan, where families cover approximately 36% of the costs [2] Group 2 - The free preschool education policy is part of a broader fertility support policy framework aimed at reducing economic burdens on families and promoting a fertility-friendly environment [2][3] - The policy is expected to require an annual fiscal investment of around 45 billion yuan, which may be sourced from the rapid growth in central government education spending [3] - Companies are also contributing to a fertility-friendly society, with over ten firms implementing measures to encourage employee childbirth since 2021 [3] Group 3 - China Oriental Education anticipates a 45%-50% year-on-year increase in net profit for the first half of 2025, driven by a 7% increase in new student registrations and a 10% rise in revenue [4] - New Oriental-S has maintained a target price of 46 HKD per share, with a projected revenue growth of 10% and 14% for the 2026/2027 fiscal years [4][5] - China Education Holdings reported a revenue increase of 11.8% year-on-year, attributed to a rise in student numbers, although net profit decreased by 9.7% [5]