China Business Intelligence Network News: Recently, the General Office of the State Council issued the "Opinions on Further Reducing the Homework Burden and Off-Campus Training Burden of Students in Compulsory Education." The "Opinions" pointed out that it is necessary to comprehensively reduce the total amount and duration of homework and reduce students' excessive homework burden; improve the school's after-school service level to meet the diverse needs of students; adhere to strict governance and comprehensively standardize off-campus training behaviors; vigorously improve education and teaching quality to ensure that students learn enough and well in school; strengthen supporting management and improve support capabilities and other requirements. As the country attaches great importance to education, the state's financial investment in education continues to grow, the proportion of fixed capital in education increases year by year, and K12 off-campus education is also experiencing rapid development.

Data show that my country’s fiscal education funding increased from 3.1 trillion yuan in 2016 to 4.0 trillion yuan in 2019. In 2019, my country's fiscal education funding reached 4.0 trillion yuan, with an average annual growth rate of 8.2%, accounting for 4.04% of GDP. According to data from the Key Laboratory of Big Data Mining and Knowledge Management of the Chinese Academy of Sciences, the size of the online education market reached 313.36 billion yuan in 2019. Among them, K12 online education benefited from the long age groups covered and became one of the important branches of the online education market in 2019. The annual K12 online education market size will reach 64.88 billion yuan, accounting for 20.70% of the overall online education market share.

The "double reduction" opinions mainly focus on K12 subject training. Quality-oriented and adult vocational training institutions will be less affected. Institutions with K12 education and training as their main business may face transformation in the future. Subject training institutions are not allowed to go public for financing, and capitalization operations are strictly prohibited; listed companies are not allowed to invest in subject training institutions through stock market financing, and are not allowed to purchase the assets of subject training institutions by issuing shares or paying cash; foreign capital is not allowed to use mergers and acquisitions, or entrustment Operate, join a chain, use variable interest entities, etc. to control or participate in disciplinary training institutions.

China Business Industry Research Institute predicts that my country’s online education market and K12 online education will be 387.39 billion yuan and 86.74 billion yuan respectively in 2021.