China Considers Turning Tutoring Companies Into Non-Profits
Friday July 23, 2021. 04:06 PM , from Slashdot/Apple
China is considering asking companies that offer tutoring on the school curriculum to go non-profit, Bloomberg News reported Friday, citing 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. From a report: 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. Local regulators will stop approving new after-school education firms seeking to offer tutoring on China's compulsory syllabus and require extra scrutiny of existing online platforms, the people said. Vacation and weekend tutoring on school subjects will also be banned, they said. Changes may still occur as the rules haven't been published.
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