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China bans for-profit tutoring in core school subjects

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Kindergarten children practise crossing a road in Jingning county in eastern China's Zhejiang province on January 26, 2018. Photo: Xinhua


China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, a report in the official Xinhua news agency said on Saturday.


The news confirmed a measure contained in a government document widely circulated on Friday and confirmed by Reuters that sent shockwaves through China's vast private education sector, hitting providers' share prices.


A teacher with her pupils on an after-lunch walk at a newly built public kindergarten in Gaimai Village of Yining county in northwestern China's Xinjiang region on November 22, 2017. Photo: Xinhua 


Foreign investment in the sector will be prohibited under the rules set out by the State Council, Xinhua said.


Curriculum-based tutoring institutions will be barred from raising money through listings or other capital-related activities, while listed companies will not be allowed to invest in such institutions, according to the rules.


The policy aims to "significantly" reduce the financial burdens faced by students and families within three years, the news agency said.



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