China’s tutoring rules create tough VIE homework

  • 📰 Breakingviews
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 51%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

The prevalent so-called VIEs used to skirt overseas investment restrictions have long existed in a regulatory gray area, but Beijing’s latest ban on overseas funds in the tutoring business suggests things are becoming more clear: mak_robyn ywchen1

China will ban tutoring for profit in core school subjects, according to a document published on July 24 by the General Office of the Central Committee of the Communist Party and the General Office of the State Council.

All institutions offering tutoring on the school curriculum will be registered as non-profit organisations, and no new licences will be granted. Foreign investment in the sector, including through so-called variable interest entities, is being prohibited and companies with existing foreign ownership will need to rectify the situation.

Separately, China's central bank on July 23 said non-bank payment companies must report plans for overseas initial public offerings and other major events. The new requirement applies to payment firms with a VIE structure, which has been widely adopted by internet companies and allows them to bypass the lengthy domestic listing process and raise funds overseas.

Payment firms should also explain the “detailed arrangement” of their VIE structures if seeking an overseas listing, the People’s Bank of China said.A teacher conducts a class at the Oxford International College in Changzhou, Jiangsu province January 10, 2013.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Reuters mak_robyn ywchen1 Samsung leaks: Z Fold3’s S Pen case, Z Flip3 renders, and water resistance leaks

Reuters mak_robyn ywchen1 thanks

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 470. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China’s Tutoring Rules Slam Education StocksThe country confirmed its intention to take drastic steps to restrain the booming after-school tutoring industry, the most recent regulatory assault on the sector. They want people to have more babies This is communism. nice
Source: WSJ - 🏆 98. / 63 Read more »

China’s Tutoring Crackdown Sends Fortunes Of Education Billionaires Into NosediveChinese authorities have ramped up their crackdown on after-school tutoring companies by unveiling a new set of sweeping regulations that bans them from making profits and raising capital from overseas markets.
Source: Forbes - 🏆 394. / 53 Read more »

Goldman Sachs downgrades Chinese education stocks on prediction market will 'shrink significantly'Goldman Sachs downgraded three U.S.-listed Chinese education stocks on expectations new regulation will slash the size of the after-school tutoring market. Pro They root against the US military. They root for Russia over the US. They mock and attack the Capitol Police. They boo the US Olympic team. They fly Confederate flags and idolize traitorous Confederate generals. And Republicans have the nerve to call themselves patriots? Pro Goldman downgrades China education stocks after a 95% fall in share prices. Now that is advice I am prepared to pay for. Pro Michael Burry Warns Retail Traders About the 'Mother of All Crashes'
Source: CNBC - 🏆 12. / 72 Read more »