China Plans To Crackdown On Private Tutoring Companies: Reuters - New Oriental Education (NYSE:EDU), Gaotu Techedu (NYSE:GOTU), Bright Scholar Education (NYSE:BEDU)

China is planning a tough crackdown on the country's $120 billion private tutoring industry, Reuters reported.
Sources told Reuters that the new rules would include trial bans on vacation tutoring and restrictions on advertising.
The trial vacation ban, along with a bar of online and offline tutoring on weekends during term time, could severely affect tutoring companies' revenues to the tune of 70-80%.
Gaotu Techedu Inc GOTU, New Oriental Education & Tech Grp EDU, TAL Education Group TAL, LAIX Inc LAIX, and Bright Scholar Education Holdings Ltd BEDU are some of the companies that are expected to be affected.
President Xi Jinping last week said schools should be responsible for student's learning rather than tutoring companies.
Apart from protecting students from the cutthroat competition, the new rules are expected to act as a financial incentive for couples to have more children as it seeks to shore up a rapidly declining birth rate.