China says will set prices for after-school tutoring

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SHANGHAI, Sept 6 (Reuters) – China will set price ranges for after-school tutoring classes and will probe institutions’ costs like teacher salaries, the state planner said on Monday, after the country barred for-profit tutoring in any school subject earlier this year.

“I believe that we are all genuinely committed, but a shift of mindset is necessary for us to bridge the final gaps that continue to separate members,” director-general Ngozi Okonjo-Iweala told ministers in her opening address at the closed-door meeting, according to a copy of her speech seen by Reuters.

The rules require all institutions offering tutoring on the school curriculum to register as non-profit organisations, triggering when they were announced a heavy selloff in shares of tutoring companies traded in Hong Kong and New York, including New Oriental Education & Technology Group and Koolearn Technology Holding Ltd.

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“All localities must insist that off-campus tutoring on the school curriculum should have public welfare attributes, fully consider how it relates to people’s livelihoods and aim to effectively reduce the education expenditure burdens of students and their families,” the NDRC said in a statement.

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The new rules announced in July are aimed at easing pressure on 6- to 15-year-olds in compulsory education as well as reducing the cost burden on parents, part of an effort to boost the nation’s birth rate.

The NDRC also said localities should look into the costs of these tutoring institutions and ensure the salaries of their tutors are not significantly higher than those of teachers at the local public schools.

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Local authorities will set benchmark fee standards and floating ranges that will take into account factors such as local economic conditions and family affordability, the National Development and Reform Commission (NDRC) said in a statement.

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