Law change may allow more listings

For the first time, China's private education sector may obtain access to the domestic stock market, because the top legislature will review an amendment of the law on the promotion of nongovernmental education next week in Beijing.

The Standing Committee of the National People's Congress is scheduled to discuss the third version of the law from Oct 31 to Nov 7. If the revised law is approved, it may go into force early next year. This law would allow educational companies to choose whether they will operate as nonprofit entities or as commercial companies and will remove the prohibition on listing of commercial education companies.

"It is not surprising the law would reaffirm the social fairness function of the nine-year compulsory education, which would still be under strict supervision. But it would also let go of other parts of the education system like preschool, high school and international education, " Liu Zhangming, an analyst at Tianfeng Securities.