Chinese regulators barred tutoring companies from making profits, as Beijing turns its focus to the growing financial burden that students — and their parents — face.
Some of China’s biggest publicly listed education companies lost significant chunks of their value as investors ditched them after the announcement of rules that require all companies that offer curriculum tutoring to register as nonprofit institutions.
The rules, which were published over the weekend, will also restrict new foreign investment, once a key avenue for those companies to raise money. They are the latest in a series of moves by China to rein in its technology sector that has hit stocks of its biggest companies, in sectors as diverse as ride hailing and music licensing. Regulators say they are tackling privacy, cybersecurity and antitrust concerns, directing their crackdown at the country’s thriving internet industry.
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