Chinese Education Stocks Plunge as Beijing Announces It Will Take Part in Operation of Private Schools

Chinese Education Stocks Plunge as Beijing Announces It Will Take Part in Operation of Private Schools
Students wave flags of the Communist Party as they prepare to watch a movie "The Founding of a Party" in Yangzhou, Jiangsu Province, on March 23, 2021. STR/AFP via Getty Images
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Chinese education providers saw a slump in stock prices as Beijing announced that private schools should adhere to the leadership of the Communist Party under a new law. Experts consider that the regime plans to further erode the operational independence of the education system.

The amended Private Education Promotion Law highlights the leadership of the Chinese Communist Party (CCP), requiring party members to take part in decision-making and supervisory processes, as well as specified educational activities at private schools.

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