Students use hand sanitisers at a school in Shanghai, China. Picture: REUTERS as Beijing steps up regulatory oversight of a $120bn industry that investors had bet billions of dollars on in recent years.
Under the new rules, all institutions offering tutoring on the school curriculum will be registered as non-profit organisations, and no new licences will be granted, according to an official document. Gaotu Techedu, New Oriental Education & Technology Group, Koolearn Technology Holding, Scholar Education Group, and China Beststudy Education Group made similar statements on Monday.
Scholar Education said that authorities had yet to provide details around the implementation of the rules and there were uncertainties as to when and how they will become specifically applicable to the group.Goldman Sachs said in a research note its one year price targets on the listed tutoring stocks would be cut by 78% on average. The impact, the note said, would be mostly due to the ban on weekend and winter and summer holiday tutoring, which brought in up to 80% of the firms' revenue.
I invested R5000 with shantelll_142 by using my LUNO app and I make over R40,000 with just few steps, shantelll_142 is an account manager who can help you trade better I recommend you to her now and start earning massively today 💹