China says government to set prices for after-school classes

The shares of companies such as TAL Education Group, New Oriental Education & Technology Group and Gaotu Techedu Inc., once stock market darlings, have all tumbled.

China said local governments should set the fees for after-school tutoring institutions that offer compulsory education subjects, another step in the country’s efforts to overhaul the private education sector. 

Local governments should establish benchmark fees and floating ranges, and include them in pricing catalogs, according to a notice from the National Development and Reform Commission. Price increases from the standard level will be capped at 10%. Local governments need to release their standard price for private tutors and related polices by the end of 2021.

Beijing unveiled a sweeping overhaul of its private education sector in July, banning companies that teach school