(Bloomberg) China is contemplating a move requiring companies offering school curriculum tuition to go non-profit. The move could wipe out the $100 billion education tech industry.
If China pursues the move, listed firms will no longer be allowed to invest in such entities and foreign debt is neither an option to the firms.
The local regulators will no longer approve education firms to offer after-school tuition on Chinese recommended syllabus.
Beijing is cracking down on the education tech companies whose tutoring platforms have been seen as distress to young pupils and a financial burden to the parents.
The education tech industry in China has attracted investors lately with up to $10 billion venture capital invested last year.
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