China’s CITIC Group launches $873m education fund

CITIC Securities Merger & Acquisition Industry Investment Funds Management, the GP, plans to channel the capital into three entities: China STEM Education Industry Investment Fund, China Excellent Teacher Development Fund, and China Cultural Education Globalization Fund. STEM refers to education in science, technology, engineering and mathematics.

The funds will invest in and acquire high-quality schools assets and advanced educational technology in China. The objective is to establish influential Chinese K-12 schools with unique features and international content, Yudong Liang, CEO of the CITIC investment unit, said in a release.

He added that the new Chinese Private Education Promotion Law, which will take effect in September of this year, will bring significant change to the sector. The amended law encourages social organizations and individuals to establish for-profit or non-profit schools and other educational institutions. However, it bans for-profit schools from enrolling students from primary to junior high school, which covers China's nine-year compulsory education system.  

As part of agreement, the CITIC investment unit also plans to set up an educational charity fund worth RMB100 million in partnership with Chinese universities including Peking University.

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• Topics
• Greater China
• Fundraising
• Renminbi fund
• China
• Education
• CITIC Securities