Caixin Global: China’s Education Companies Knew Sweeping Rules Were In The Pipeline

Chinese officials held multiple rounds of talks with top private education firms to discuss the industry’s future before announcing sweeping new regulations last week that are set to transform the sector, Caixin has learned. The meetings indicate that companies were bracing for impact for weeks before Friday’s announcement, which roiled a sector that employs millions of people and torched the share prices of major players.

"Every market segment is up for grabs, but each of them is probably only worth 10 billion yuan ($1.52 billion) or 20 billion yuan," said Claudia Wang, a partner at Oliver Wyman, a consultancy, adding that companies would struggle to detach themselves from solid demand for test preparation but may pivot in the long term toward supplementing the work of schools.

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