Understand Chinese culture to know this is a worthwhile play

Firstly, Chinese parents only want the best for their children and are ultra-competitive to find ways to enrich their children's education - believing this will give them a stronger footing in life and its the parents' obligation to do so. This is the Chinese culture. So, this sector will never go away and has more potential to grow (see second level).

Secondly, China's government has lifted regulations related to child birth. That means there will be more legally acknowledged children and in general, more children encouraged to be born. This will boosts the "consumers" for the sector.

For speculators, I agree with the widespread view that this is not the stock for you. But for value investors and those looking to balance or build a long portfolio, this is now a cheap stock to consider for inclusion.