China starts blocking paid after-school tutoring by public-school teachers (updated)

East Buy Holding

28/07/2021 10:45

(Adds details and context)
    BEIJING, July 28 (Reuters) - China's Ministry of Education
said on Wednesday that it had begun implementing a campaign to
stop paid after-school tutoring services provided by teachers
working for public primary and middle schools.
    China issued sweeping rules last week that bar for-profit
after-school tutoring in core school subjects, in an effort to
boost the birth rate by lowering family living costs. The policy
also restricts foreign investment in the sector.  urn:newsml:reuters.com:*:nL1N2OZ17U
    The ministry said in a statement on its website that it
would also tackle teachers illegally receiving bribes, and show
"zero tolerance" towards teachers who "teach only after classes
but not during classes".
    The new rules threaten to decimate China's $120 billion
private tutoring industry and triggered a heavy selloff in
shares of tutoring companies traded in Hong Kong and New York,
including New Oriental Education & Technology Group  9901.HK 
and Koolearn Technology Holding Ltd  1797.HK .
    Under the new rules, all institutions offering tutoring on
the school curriculum will be registered as non-profit
organisations.  urn:newsml:reuters.com:*:nL1N2OZ17U

 (Reporting by Yingzhi Yang and Tony Munroe; Editing by Kevin
Liffey)
 ((Yingzhi.Yang@thomsonreuters.com; +861056692133;))