Businesses in China's education sector must make switch to non-academic services: Analysts

A stands near an outlet of private educational services provider New Oriental Education and Technology Group in Beijing.
A stands near an outlet of private educational services provider New Oriental Education and Technology Group in Beijing.PHOTO: REUTERS

BEIJING - Education companies hit by new regulations in China will need to grow their non-academic businesses or risk shuttering, analysts said.

Share prices of China's largest education giants, which have relied heavily on tutoring services for revenue, continued to take a beating on Tuesday (July 27) after the country's highest governing body announced sweeping new rules affecting both offline and online learning centres in the fast-growing industry.

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