China private tutoring rules will have lasting impact
Significance Some USD126bn in market capitalisation has been erased from Chinese education-related stocks traded in the United States, China and Hong Kong this year in anticipation of stronger regulations. The government argues that the changes are necessary to redress educational inequalities and achieve 'common prosperity'. Impacts The intense pressure which the education system places on parents and children is unlikely to be relieved without more substantive reforms. The regulations will affect the aspiring middle class more than the truly affluent, who will always find ways to advantage their children. The reform will do little to change the stark regional inequalities in education nationwide, nor the urban-rural divide in future outcomes.