Reuters
China’s new private tutoring rules put billions of dollars at stake
HONG KONG (Reuters) -China’s sweeping new rules in private tutoring has left private education firms facing a significant business impact as Beijing steps up regulatory oversight of a $120 billion industry that investors had bet billions of dollars on in recent years. The rule changes, which are much tougher than previously expected, have put at risk billions of dollars of public and private capital ploughed into the sector over the last few years on hopes for continued demand in the world’s most populous country. The move triggered a massive fall on Friday in the Hong Kong and New York-listed shares of Chinese private education companies, and the selloff continued on Monday with some of the stock plummeting between 30% and 40%.
