"Regulations for the Implementation of the Law on the Promotion of Private Education in People's Republic of China (PRC)" Article 6 A social organization or individual that runs a private school shall have a good credit status. The establishment of private schools can be funded in currency, or in kind, construction land use rights, intellectual property rights and other non-monetary property that can be valued in currency and transferred according to law; However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations.
Seventh public schools that implement compulsory education shall not establish or participate in the establishment of private schools, nor shall they be converted into private schools. Other public schools shall not hold or participate in the holding of for-profit private schools. However, public schools that implement vocational education can attract capital, technology, management and other elements of enterprises, and organize or participate in the organization of for-profit private schools that implement vocational education.
When a public school holds or participates in the holding of a private school, it shall not use state financial funds to affect the teaching activities of the public school, and shall not participate in running the school only by way of brand export, and it shall be approved by its competent department. When a public school holds or participates in the holding of a non-profit private school, it shall not obtain school-running income by charging management fees or charging management fees in disguised form.
Private schools organized or participated in by public schools shall have independent legal personality, have campuses, basic education and teaching facilities and independent full-time teachers separated from public schools, conduct independent accounting in accordance with the unified national accounting system, enroll students independently, and issue academic certificates independently.
Public schools that organize or participate in the organization of private schools shall enjoy the rights and interests of the organizers and fulfill the obligations of state-owned assets management.