Financial institutions allowed to develop financial products for private schools

Source: Xinhua | 2018-08-20

China plans to permit financial institutions to develop financial products suitable for private schools, as a move to advance non-government funded education.

Private schools can apply for financing from financial institutions using future operating income and intellectual property rights as a guarantee, according to a draft amendment to the regulation regarding non-government funded education.

 The regulation has been published by the Ministry of Justice for the public to provide opinions until Sept. 10.

Foundations and other corporate organizations of profit-led private schools can apply for financing using their own assets or services provided for schools as a guarantee, said the draft.

Profit-led private schools can be established with funds raised through issuing shares and bonds and setting up public welfare funds, according to the Ministry of Education.