For the love of learning

Chinese parents highly value education, considering it crucial for their children's future success. This emphasis results in substantial spending on private tutoring from an early age. The intense academic competition has led to Shanghai students aged 12-14 spending 9.8 daily hours on-campus, exceeding global averages. In response to concerns about the impact on students' physical and mental health, China introduced the Double Reduction Act in 2021, restricting traditional after-school tutoring for primary students. Post-Double Reduction, the regulatory environment has stabilized, and Chinese families continue to prioritize education, demonstrating resilient spending in this sector even in the face of macro challenges. A UBS survey identified children's education as the top priority based on spending patterns in 2023. After suffering from the regulatory pressure, the resilient spending has led to a sharp relief for leading local providers like New Oriental Education and Tal Education Group.

Source: UBS, 2024