China-Listed Tutoring Firms Evaluate Impact From New Regulations
China-Listed Tutoring Firms Evaluate Impact From New Regulations
(Bloomberg) -- At least six mainland-listed companies made exchange filings Sunday on the impact from China’s sweeping rules on after-school tutoring, vowing compliance while evaluating possible adverse effects on their business.
Shenzhen-listed Doushen Beijing Education & Technology Inc. and Dongguan Kingsun Optoelectronic Co. said they expect a major negative impact on performance as curriculum tutoring makes up a large part of their businesses. XueDa XiaMen Education Technology Group Co. and two other firms said they see some or little impact on their revenue and profit.
Shanghai Xinnanyang Only Education & Technology Co. said in a statement to the Shanghai stock exchange that it’s evaluating possible effects of the new rules and will further expand business on vocational education and basic education.
China on Saturday unveiled a sweeping overhaul of its $100 billion education tech sector, banning companies that teach the school curriculum from making profits, raising capital or going public. All vacation and weekend tutoring related to the school syllabus is now off-limits.
All companies vow to comply with the new regulations and support the decision of the party, according to the exchange filings.
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With assistance from Bloomberg