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Southern Asset Management Xiao Jiaqian expresses confidence in the outlook for China's education industry

China Southern Asset Management Co., Ltd.
2020-02-18 15:24 364

SHENZHEN, China, Feb. 17, 2020 /PRNewswire/ -- The coronavirus outbreak in China has led to the country's primary and secondary school students completing the unusual first lesson of the new school year online as internet + education has become the preferred choice of learning during these challenging days.

Will the upward trend in online education-related stocks continue over the long term? How large is the market? What can investors do to leverage the opportunities? 

On February 11, 2020, China Southern Modern Education Equity Fund manager Xiao Jiaqian shared her views on the education industry's future in an online interview as part of a series presented by Toutiao in partnership with the Asset Management Association of China. The series was designed to provide fund managers with insights on how to address the challenges posed by the epidemic.

She said, "The rapid growth of the online education sector in China is driven by several emotional factors. The epidemic has heightened awareness among practitioners and users, boosting organic traffic on online education platforms. As a result, the sector is embracing a historical opportunity. After educational organizations delayed the resumption of classroom courses, the large user base turned to online solutions, saving online platforms a significant amount in marketing expenses."

"However, the opportunity varies depending on the readiness. Some online firms already have content and technologies available, while it remains to be seen whether the platforms that are still deploying necessary resources can capitalize on the opportunity."

"The four major long-term drivers include constant updating to meet evolving expectations, favorable policies, technological R&D and the evolving asset securitization."

"Extracurricular training and vocational organizations as well as colleges and universities are more likely to win in the competition. Taking into account industry policies and the barriers to entry, I am confident in the development of the extracurricular training and online education market, as well as vocational education, higher education and innovative technologies."

"With the recent explosive growth of the online education sector, parents are increasingly familiar with the online teaching model. After we overcome the epidemic, users will further develop a habit of consuming educational content online. The potential is huge. The one trillion yuan market may soon give birth to several excellent players. We are confident in the outlook for the sector."

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Source: China Southern Asset Management Co., Ltd.
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