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Embattled China Education Firms Hope Legal Loophole Saves Them: FT

GaoTu Edutech’s headquarters in Beijing. Photo: GaoTu.


(AF) Chinese education companies and their investors are hoping that “loose wording” in a new law, which has sent their valuations plummeting, will offer ways for the firms to continue operating, the Financial Times reported.

Companies like Gaotu Techedu and New Oriental have been hard hit by last week’s announcement of clamps on their earnings and backers, the report stated. Now they’re banking on the law containing provisions that will enable them to change their business models, spin off parts of their operations or exit the sector profitably, it added. Full story: Financial Times  


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Mark McCord

Mark McCord is a financial journalist with more than three decades experience writing and editing at global news wires including Bloomberg and AFP, as well as daily newspapers in Hong Kong, Sydney and Melbourne. He has covered some of the biggest breaking news events in recent years including the Enron scandal, the New York terrorist attacks and the Iraq War. He is based in the UK. You can tweet to Mark at @MarkMcC64371550.


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