(Yicai Global) Dec. 22 -- Shares in Qtone Education Group, Reform Culture Holdings and other Chinese educational software developers as well as those engaged in occupational training soared by the exchange-imposed limit today after the Chinese government said it will promote the construction and reform of the vocational educational system and direct more funds into it.

Qtone Education’s share price [SHE:300359] closed up 14.4 percent at CNY6.75 (USD1), while earlier in the day it surged 20 percent to hit CNY7.08. Stocks on the Nasdaq-style ChiNext board have a maximum fluctuation of 20 percent each day while those on the main boards are capped at 10 percent.

Reform Culture [SHA:600636] and Offcn Education Technology [SHE:002607], a vocation training institute, both jumped by the daily limit of 10 percent to reach CNY10.02 and CNY5.69 respectively. 

Local governments should formulate financial, fiscal, land, credit, employment and income distribution policies to support the development of vocational education, as well as guiding social and industrial capital into the industry, according to a document released by the country’s cabinet yesterday.

Local governments should include eligible professional training projects in their special bonds and budgets, while banks should provide financial support for the development of vocation education, it said.

The central government is encouraging governments at all levels, businesses, schools and scientific research centers to participate in the construction of the occupational training system, CITIC Securities said in a report released today. This will bring dividends to listed companies while at the same time improving the quality of vocational education.

Vocation training has always enjoyed a lot of policy support, SooChow Securities said in a recent report. The sector is stable, yet valuations are low. Valuations are expected to be corrected as more supporting measures are introduced.

Editor: Kim Taylor