China Said to Mull Turning Tutoring Firms Into Non-Profits
- Edtech firms to be banned from going public, foreign capital
- Vacation, weekend tutoring for school subjects will be banned
Photographer: Johannes Eisele/AFP/Getty Images
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China is considering asking companies that offer tutoring on the school curriculum to go non-profit, according to people familiar with the matter, as part of a sweeping set of constraints that could decimate the country’s $100 billion education tech industry. Shares sank.
In rules currently being mulled, the platforms will likely no longer be allowed to raise capital or go public, the people said, asking to not be identified because the information is not public. Listed firms will also probably no longer be allowed to invest in or acquire education firms teaching school subjects while foreign capital will also be barred from the sector, one of the people said.