China targets education companies to reduce stress in children and cut parenting costs
'All private tutoring firms now must register as NGOs, they're banned from raising funds from the stock markets and foreign investment ... Those who have violated the regulations shall be cleaned up and rectified,' says the document circulating on state TV.
EdTech firms have been funded by Alibaba, Baidu, Tencent and Didi.
Tutoring classes are banned on weekends, public holidays, school vacations, and after 9pm.
Publicly traded companies in the sector were down between 25 and 60%.
Clashing policies: China wants international champions, but also wants to crack down on those who'd like to do that. Chinese people don't know what to think about these conflicting policies and it's difficult to get them to talk about it in public or even in private, reportedly.
The reason has something to do with China wanting more babies, and the barrier to this caused by costs to parents for educating children.
Reportedly, the Chinese public is happy with this, as they are relieved from an expectation that comes with a large cost.