Chinese education companies rally on central government subsidies

 

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Shares of Chinese education companies stage a strong rally on Monday, with Xueda Education, Shanghai Action Education, China High-Tech and China Reform Culture all surging by the daily limit of 10%.

The Ministry of Finance and the Ministry of Education recently issued a notice including increasing the budget for the modern vocational education in 2023.

China’s central government will continue to provide subsidies for high-level vocational schools and the total amount this year will reach 4.02574 billion yuan.

The two ministries told local authorities to effectively step up the support for high-level vocational schools, according to the notice.