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China Bans For-Profit School Tutoring in Sweeping Overhaul
Published on: 2021-07-26
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China is barring tutoring for profit in core school subjects to ease financial pressures on families that have contributed to low birth rates, news that sent shockwaves through its vast private education sector and share prices plunging.

The policy change, which also restricts foreign investment in a sector that had become essential to success in Chinese school exams, was contained in a government document widely circulated on Friday and verified by sources.

The move threatens to decimate China's $120 billion private tutoring industry and triggered a heavy selloff in shares of tutoring firms traded in Hong Kong and New York including New Oriental Education & Technology Group and Koolearn Technology Holding Ltd.

All institutions offering tutoring on the school curriculum will be registered as non-profit organisations, and no new licences will be granted, according to the document, which says it was distributed by China's State Council, or cabinet, to local governments and is dated July 19.

More than 75% of students aged from around 6 to 18 in China attended after-school tutoring classes in 2016, according to the most recent figures from the Chinese Society of Education, and anecdotal evidence suggests that percentage has risen.

China International Capital Corp said the rules are "tougher than market expectations, and we expect material impact on future business and capital market activities."

The pressure for children to succeed in an increasingly competitive society has given rise to the term Jiwa, or "chicken baby", which refers to children pumped with extracurricular classes and energy-boosting "chicken blood" by anxious parents.

Existing online tutoring firms will be subject to extra scrutiny and after-school tutoring prohibited during weekends, public holidays and school vacations, the document said. China's State Council did not immediately respond to a request for comment.

Curriculum-based tutoring institutions would be barred from raising money through listings or other capital-related activities, while listed companies would be banned from investing in such institutions, according to the document.

China's for-profit education sector has been under scrutiny as part of Beijing's push to ease pressure on school children and reduce a cost burden on parents that has contributed to a drop in birth rates. In May, China said it would allow couples to have up to three children, from two previously.

The policy aims to reduce burdens on students and family finances "effectively" within one year and "significantly" within three, the document said.



1. 学校要确保小学一、二年级不布置家庭书面作业,可在校内适当安排巩固练习;小学三至六年级书面作业平均完成时间不超过60分钟,初中书面作业平均完成时间不超过90分钟。

2. 严禁给家长布置或变相布置作业,严禁要求家长检查、批改业。

3. 课后服务结束时间原则上不早于当地正常下班时间;对有特殊需要的学生,学校应提供延时托管服务。

4. 依法依规严肃查处教师校外有偿补课行为,直至撤销教师资格。

5. 各地不再审批新的面向义务教育阶段学生的学科类校外培训机构,现有学科类培训机构统一登记为非营利性机构。对原备案的线上学科类培训机构,改为审批制。各省(自治区、直辖市)要对已备案的线上学科类培训机构全面排查,并按标准重新办理审批手续。

6. 学科类培训机构一律不得上市融资,严禁资本化运作;上市公司不得通过股票市场融资投资学科类培训机构,不得通过发行股份或支付现金等方式购买学科类培训机构资产。

7. 校外培训机构不得占用国家法定节假日、休息日及寒暑假期组织学科类培训。培训机构不得高薪挖抢学校教师;从事学科类培训的人员必须具备相应教师资格。

8. 严格控制资本过度涌入培训机构,培训机构融资及收费应主要用于培训业务经营,坚决禁止为推销业务以虚构原价、虚假折扣、虚假宣传等方式进行不正当竞争,依法依规坚决查处行业垄断行为。

9. 学校不得随意增减课时、提高难度、加快进度;降低考试压力,改进考试方法,不得有提前结课备考、违规统考、考题超标、考试排名等行为。

10. 严格按课程标准零起点教学,做到应教尽教;逐步提高优质普通高中招生指标分配到区域内初中的比例,规范普通高中招生秩序,杜绝违规招生、恶性竞争。

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