China confirms ban on for-profit tutoring in core school subjects - Xinhua

[July 24, 2021]    SHANGHAI (Reuters) -China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, a report in the official Xinhua news agency said on Saturday.

Children leave a school in the Shekou area of Shenzhen, Guangdong province, China April 20, 2021. REUTERS/David Kirton/File Photo/File Photo

The news confirmed a measure contained in a government document widely circulated on Friday and confirmed by Reuters that sent shockwaves through China's vast private education sector, hitting providers' share prices.

Foreign investment in the sector will be prohibited under the rules set out by the State Council, Xinhua said.

Curriculum-based tutoring institutions will be barred from raising money through listings or other capital-related activities, while listed companies will not be allowed to invest in such institutions, according to the rules.

The policy aims to "significantly" reduce the financial burdens faced by students and families within three years, the news agency said.

(Reporting by Zoey Zhang and Engen Tham in ShanghaiEditing by Alison Williams and Helen Popper)

[© 2021 Thomson Reuters. All rights reserved.]

Copyright 2021 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.