China's exam economy remains robust as 12.9 million students sit gaokao

(ECNS) - China's annual college entrance exam, or gaokao, drew 12.9 million candidates this year, sustaining a multibillion-yuan "exam economy" despite a second straight decline in applicant numbers.

The nationwide test began June 7 and is widely regarded as one of the most important academic milestones for Chinese students. Spending linked to the gaokao continues to drive demand for education services, lodging, meals and post-exam consulting.

Consumption related to the gaokao typically falls into three stages: pre-exam preparation, accommodation and meals during the test period, and post-exam college application planning, according to BT Finance.

The largest segment remains exam preparation, with China's full-time gaokao prep market exceeding 32 billion yuan ($4.5 billion) in 2025 and projected to grow at an annual rate of 18.7%.

Demand for paid college application consulting services has also expanded rapidly. Research firm iiMedia said the market reached about 1.1 billion yuan in 2025 and is projected to grow to 1.2 billion yuan by 2027.

Businesses ranging from hotels and restaurants near testing centers to florists and clothing retailers also reported increased demand during the examination period.

Additional spending is expected after the exams, particularly on smartphones, driving lessons, tourism and graduation-related gatherings.

This year's 12.9 million applicants were down 450,000 from 2025, marking the second consecutive annual decline after last year's 70,000 drop — the first decrease in roughly a decade.

(By Zhang Jiahao)