Go underground?
The father, whose surname is Li, is a software developer. He said that as teaching goes underground, parents may hire private tutors.
“If the college entrance examination is still based on scores, I hope my children can improve their scores through increased training,” he added.
At present, private educational institutions continue to operate while digesting the impact of reforms on the industry that used to be a cash cow.
A person familiar with the matter said that Xueersi, an education brand under the New York-listed Good Future Education Group, is laying off some teaching and sales staff.
Although the summer courses are still in progress, the staff is not sure whether the fall or winter semester will continue as planned.
Dave Wang of Nuvest Capital said: “Listed companies will have to significantly adjust their current business models.”
“The profitability will be extremely unpredictable and uncertain.”
