China’s education companies surged after President Xi Jinping stressed the importance of improving the quality of the workforce given the declining birthrate and aging population.
(Bloomberg) — China’s education companies surged after President Xi Jinping stressed the importance of improving the quality of the workforce given the declining birthrate and aging population.
XueDa XiaMen Education Technology Group Co. and China Reform Culture Holdings both jumped by the 10% limit in early trading Monday, while Offcn Education Technology Co. and Beijing Kaiwen Education each advanced around 7% before paring gains.
Xi’s comments help reinforce the perception that as China’s shrinking population becomes a trend, the authorities will shift their focus toward enhancing education to improve the skills of the workforce. The message follows recent confirmation that the nation’s population started shrinking last year, for the first time in six decades.
Read More: Xi Calls for Population-Plan Revamp as Demographic Crisis Builds
There’s a need to fully understand and properly treat demographic trends, and support modernization with Chinese characteristics through the high-quality development of the workforce, Xi told top officials, according to a report posted on the central government’s website late Friday.
China should focus on improving the quality of its population, while keeping up an appropriate birthrate and population size, he said at a meeting of the Central Financial and Economic Affairs Commission.
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