CHINA INNOVATION

MIU's Funder has always been committed to furthering education around the globe and has had great success fundraising the capital to do so and then using that capital to educate those who do not have good access to education.

Before MIU, our funder worked through the China Education Group and Dalian business institute to be the first ever Chinese virtual interest entities in the education sector to list overseas in 2005, to raise money in western capital markets. Both companies successfully raised money to develop their education programmes in China. This success led to a number of other Chinese education VIE listings in western markets over the course of the next ten years. Across the span of the decade, these companies raised over $1 billion allowing hundreds of thousands, if not millions, to study courses which then led to the creation of thousands of jobs and hundreds of businesses.

THE STORY OF EDUCATION VIEs

China Education Group was the first VIE in the education sector and the first to raise money in western capital markets. We carried out research into the best routes and following authorisation of the Chinese government, we established that investors would be enthusiastic in supporting this innovation and we were the first to apply the rules for an education VIE.

As can be seen in the Forbes Article, the EdTech market in China is believed to continue to grow for three key reasons.

1. Cultural Values
2. Scale of Population
3. Government Support - almost every year since 2011, the Chinese government has increased it's percentage of GDP spend toward education.

China pushed for development in their education sector and investors saw a real opportunity in this area. Through the VIEs we brought in western money and western educational links to Chinese universities. We pioneered the route which then led to a number of listings using the VIE route and well in excess of 1 billion dollars raised for Chinese education.

London Asia Capital, which has 32 offices in China,  promoted education VIEs and used ours as an example. London Asia's China focus was huge and a lot of publicity was generated for our work.

VIE's quickly grew in popularity and many investors realised the potential of them. It was through RNS announcements, articles by industry specialists, and investment conferences all about our work, news spread of the potential of VIE's in the education sector. Both the press and stock brokers who were interested in the education sector, will have attended these conferences and will have again, spread the word of VIE's throughout the education industry. Our advisors who worked on the transactions, based in both the Cayman and Virgin Islands, will have worked with various companies after us and will have spread the word of our innovation and worked on directly or advised on indirectly other VIE education listings.

The Insider Article shows that the by July of 2011, eleven Chinese education service industry companies have been listed in western markets. The services of these companies covered areas such as foreign language training,  primary and secondary school student tutoring, distance education and professional education. The impact that the various companies had on the virtual learning world was significant in that VIE entities paved the way for China to become the 'EdTech leader of the world.' (see Forbes article below.)

ARTICLES SUPPORTING OUR STORY:

1. The Return of the MOOC: Established Education Providers v New Contenders, 2017
2. Why Is China The World's Leader in EdTech?, Forbes, 2019
3. 11 Chinese Education Stocks Are Listed in the US, With A Total Market Cap of $7.5 Billion, Insider, 2011