HONG KONG -- Hopes that China was softening its stance on companies in the education sector have been dealt a blow after Beijing reiterated that private tutoring companies are banned from making a profit.
The statement on Thursday followed a two-week window in which shares in education companies rallied, fueled by a notice from the State Council on Dec. 14 highlighting the need to "encourage social forces to provide diversified education services," "execute overall regulation on the after-school tutorial sector" and "support Chinese-foreign cooperative educational projects."
