- China looked further to tighten supervision over its battered online education sector.
- China's move indicated its lack of preparation to unshackle the private tutoring arena despite loosening curbs on tech giants, Bloomberg reports.
- Edtech companies plunged after the Ministry of Education published a new set of restrictions that limit the fees and operating times of private tutoring services for primary and middle school students.
- Also Read: Tencent Cuts Stake In This Chinese Edtech Firm
- Firms offering non-curricular tutoring must end physical classes by 8:30 pm and online sessions by 9 pm.
- The services must restrict one-time charges to 5,000 yuan ($720) and mandate a special trust account with state-designated banks for pre-paid fees.
- Some of the prominent private tutoring companies included Gaotu Techedu Inc GOTU, New Oriental Education & Technology Group, Inc EDU, TAL Education Group TAL, LAIX Inc LAIXY, and Bright Scholar Education Holdings Ltd BEDU
- Price Actions: GOTU shares traded lower by 11.7% at $2.50 in the premarket on the last check Thursday. TAL shares traded lower by 5.99% at $7.06, and EDU shares traded lower by 2.06% at $35.61.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.