China has banned out-of-school tutoring in education reform, causing the market to plummet among dozens of students on the list. China’s government is cracking down on the country’s booming off-campus tutoring industry, in one of the biggest overhauls of the education sector that sent dozens of publicly listed stocks tumbling in Shanghai and Hong Kong. Local authorities will ban the provision of holiday and weekend tutoring, and will no longer approve the establishment of new tuition centres, according to sources briefed on a newly released policy document promulgated by the State Council. The total number of nationwide student enrolments in K-12 after-school tutoring has increased from 202.6 million in 2015 to 325.3 million in 2019 and is expected to further increase to 659.5 million by 2024, according to the listing prospectus by New Oriental Education. The booming industry – estimated at 811 billion yuan in 2021 by Frost Sullivan – has added to the costs of young households, contributing to a financial burden that has dissuaded families from having more children, even as the government abandoned its one-child policy population control.
