Shares of US-listed education companies jumped in pre-market trading, with the latest reports suggesting they are set for new life.
China is considering issuing more than a dozen licenses to allow companies to offer after-school tutoring, the WSJ said today, citing people familiar with the matter.
Companies including Gaotu Techedu and Yuanfudao have held discussions with regulators in recent weeks about allowing them to resume offering tutoring services to students in ninth grade and below, according to the report.
Under the new licensing arrangement, tutoring companies would be required to operate out-of-school training on a nonprofit basis but would be allowed to profit from other businesses, such as providing professional exam training to adults, the report said.
The government would cap the fees these companies could charge for each class, according to the report.
Gaotu Techedu jumped 30 percent in pre-market trading after the report, while New Oriental rose nearly 30 percent and TAL Education gained more than 20 percent.