Chinese Kindergartens Convert from Private to Public

Statistics show that over half of China’s pre-school education needs are met by the private sector. However, after many recent cases of child abuse in private kindergartens, some regional governments are developing a plan to make some private kindergartens public. Shenzhen government has issued an opinion paper discussing the possibility of publicizing 340 private kindergartens. Although the plan has not been officially confirmed, it has still caused a huge disturbance in the sector.

Many private operators went through an intensive tender system to obtain their operating right, and are still far from a return on their investment (breakeven for such operators typically occurs between three and six years). Based on Guangdong Provincial Government’s plan, 30% of kindergartens should be publically owned and Shenzhen would need to have hundreds more public kindergartens to meet that quota. A number of other cities, such as Chongqing and Changsha, would also face similar issues.

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