Bloomberg News reports that China is ramping up its crackdown on the online education sector, forcing popular education startups to delay their initial public offering plans this year.
A few months ago, edtech was one of the hottest investments in China's post-COVID internet industry, drawing more than $ 10 billion in venture capital last year from leading companies such as Alibaba Group Holding Ltd., Tencent Holdings Ltd. and SoftBank Group Corp. until the government stepped in as well.

President Xi slot Jinping suggested in March that after-school tutoring was on the rise. and causing pressure on children Xi Jinping's attitude signaled his interest in not too much control over the networking business.

Xi's stance has led to warnings in state media and sanctions aimed at the exploitation of addiction to China's academic achievement. China's Ministry of Education now plans to create a dedicated department to oversee all private education platforms for the first time. According to a person close to the matter with Bloomberg news agency.

A government campaign has disrupted several potential mega-IPOs, including Tencent-backed VIPKid and Huohua Siwei, who have canceled their listing on the U.S. stock exchange, despite liaising with banks. for several months to prepare for this matter.

Alibaba-invested Zuoyebang is likely to miss its target for a launch sometime in the year, and Yuanfudao, the most valued Tencent-backed rival at $ 1,550 million, will not start preparing for the offer. Soon to sell IPO shares, suggesting that there is an internal problem. This month, Chinese authorities have imposed a number of restrictions on tutoring businesses. This includes limiting the after-school tuition fees that the company can charge, and fines Yuanfudao and Zuoyebang for false advertising claims.