Chinese education technology firm Yuanfudao announced their investment of 100 million yuan ($13 million) to establish a fund for future quality education development.

The fund will be used for talent incentives, technological innovation, and resource integration related to quality education. Quality education mainly refers to a more comprehensive education system that aims to nurture the various capabilities of students.

The move came as Yuanfudao unveiled several initiatives earlier this week, including the launch of a quality education research center on new curriculum standards in cooperation with over 100 industry experts.

Ma Min, vice-president of Yuanfudao, said that the country's new curriculum standards aim to cultivate children's core capabilities, which is in line with the company's quality classes.

Notably, the Beijing-based company has integrated AI large models and proprietary technologies across its education services, including AI-assisted live classes and AI-powered essay evaluations.

According to a report by market consultancy Frost & Sullivan, China's quality education market has grown at a compound annual rate of 84.1 percent from 2019 to 2023. 

While markets in first-tier, new first-tier and second-tier cities are maturing, robust demand nationwide will grow over the next five years, it said.