China’s edtech crackdown is erasing billions from the

fortunes of its education tycoons

Larry Chen, the former school teacher who became one of the world’s
richest people, has lost his billionaire status as China cracks down on
its private education sector.

Chen, the founder, chairman and chief executive officer of Gaotu

Techedu Inc., is now worth $336 million, according to the Bloomberg
Billionaires Index, after shares in his online-tutoring firm plunged by
almost two-thirds in New York trading on Friday on reports of the
regulatory overhaul.

On Saturday, China released new regulations that ban companies that

teach school curriculums from making profits, raising capital or going
public. It’s the latest blow for Chen, who has shed more than $15 billion
in wealth since late January as Gaotu’s stock tumbled.

Larry Chen, the former school teacher who became one of the world’s
richest people, has lost his billionaire status as China cracks down on
its private education sector.

Chen, the founder, chairman and chief executive officer of Gaotu

Techedu Inc., is now worth $336 million, according to the Bloomberg
Billionaires Index, after shares in his online-tutoring firm plunged by
almost two-thirds in New York trading on Friday on reports of the
regulatory overhaul.

On Saturday, China released new regulations that ban companies that

teach school curriculums from making profits, raising capital or going
public. It’s the latest blow for Chen, who has shed more than $15 billion
in wealth since late January as Gaotu’s stock tumbled.

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Larry Chen, the former school teacher who became one of the world’s
richest people, has lost his billionaire status as China cracks down on
its private education sector.

Chen, the founder, chairman and chief executive officer of Gaotu

Techedu Inc., is now worth $336 million, according to the Bloomberg
Billionaires Index, after shares in his online-tutoring firm plunged by
almost two-thirds in New York trading on Friday on reports of the
regulatory overhaul.

On Saturday, China released new regulations that ban companies that

teach school curriculums from making profits, raising capital or going
public. It’s the latest blow for Chen, who has shed more than $15 billi on
in wealth since late January as Gaotu’s stock tumbled.

Operating losses “can only worsen,” she said.

Source: https://fortune.com/2021/07/26/china-edtech-crackdown-
founders-losing-billionaire-fortune/