Tutoring firms likely to pivot to non-academic fields
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A branch of Xueersi, a private educational service provider owned by TAL Education Group, in Beijing. Share prices of New York-listed TAL and Gaotu have fallen by at least 76 per cent over the past five days, when rumours of a severe clampdown started spreading last Friday.
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 yesterday after the country's highest governing body announced sweeping new rules affecting both offline and online learning centres in the fast-growing industry.