China’s Harsh Regulation on Education Resulted in 200K Layoffs and $100B Wiped Off

IBL News | New York

China Communist Government’s regulatory crackdown on the nation’s for-profit education industry has resulted in over 200,000 people being laid off and $100 billion lost, according to an analysis by

Last year, after a series of fines and restrictions, China’s Government ended up with a harsh regulation that marked the end of an era for the for-profit tutoring industry in China.

Education stock plummeted by 90% (as shown in the graphic below), and many companies went bankrupt.

This collapse also affected to stock prices of Chinese companies listed in the U.S. and Hong Kong.

Additionally, these measures impacted tens of millions of students from kindergarten through grade nine.

Company Market Cap

(Feb 16, 2021)

Market Cap 

(Jul 26, 2021) 

Market Cap 

(Jan 24, 2022)

New Oriental Education & Technology Group Inc. (EDU) $33.49B $3.27B $2.78B -$30.71B
TAL Education Group (TAL) $52.54B $2.84B $2.44B -$50.10B
GSX Techedu Inc. (GOTU) $27.67B $0.64B $0.63B -$27.04B
Youdao, Inc. (DAO) $4.25B $1.06B $1.76B -$2.49B
China Online Education Group (COE) $0.55B $0.06B $0.04B -$0.51B
Total $118.5B $7.9B $7.7B -$110.9B

* The market cap loss is calculated from Feb 15, 2021 to Jan 24, 2022.

The Report of