Financial institutions allowed to develop products for private schools

BEIJING — China plans to permit financial institutions to develop financial products suitable for private schools, as a move to advance nongovernment funded education.

Private schools can apply for financing from financial institutions using future operating income and intellectual property rights as a guarantee, according to a draft amendment to the regulation regarding nongovernment funded education. The regulation has been published by the Ministry of Justice for the public to provide opinions until Sept 10.

Foundations and other corporate organizations of profit-led private schools can apply for financing using their own assets or services provided for schools as a guarantee, said the draft.

Profit-led private schools can be established with funds raised through issuing shares and bonds and setting up public welfare funds, according to the Ministry of Education.

The draft also stipulated that private schools can enjoy preferential policies on tax, public service prices, use of land and social security funds for teachers.