BEIJING—China’s Ministry of Education said on July 28 that it began implementing a campaign to stop paid after school tutoring services provided by teachers who worked for public, primary, and middle schools.
The Chinese regime issued rules last week barring for-profit after school tutoring in core school subjects in an effort to boost the birth rate by lowering living costs for families.
The policy also restricts foreign investment in the sector.
The new rules threaten to decimate China’s $120 billion private tutoring industry and triggered a heavy selloff in shares of tutoring companies traded in Hong Kong and New York, including New Oriental Education & Technology Group and Koolearn Technology Holding Ltd.
Under the new rules, all institutions offering tutoring on the school curriculum will be registered as non-profit organizations.