Report: China pulls plug on for-profit tutoring

“China unveiled a sweeping overhaul of its US$100 billion education tech sector, banning companies that teach the school curriculum from making profits, raising capital, or going public,” reported Bloomberg.

Details:

• The new regulations involve limiting after-school tutors from accepting overseas investments, which may include those from the offshore registered entities of Chinese firms.
• Listed firms were also banned from investing in and acquiring edtech businesses that deal with school curriculum.

Dive deeper:

• China’s online education market was expected to be worth US$63.6 billion in 2020, spurred on by parents who are willing to spend to boost their children’s academic performance.
• Big edtech players like Tencent-backed Yuanfudao and Alibaba-backed Zuoyebang were recently fined by the State Administration for Market Regulation in what seems to be part of the government’s crackdown on China’s tech giants.