Chart of the Day: Rules to Cut Off Preschools From Capital Markets to Hit Private Operators

Beijing has tightened its policing of the preschool sector, following several high-profile cases of alleged child abuses across the country.

The State Council, China’s Cabinet, earlier this month banned private kindergarten operators from obtaining funding through public listings and forbade listed companies from investing in the business through share sales or cash injections. The measures were taken to hinder operators from pursuing profits in ways that could undermine child safety.

Nearly half of kindergarten operators are expected to suffer a serious blow from the new policy because China has more private preschools than public ones.

Graphic: Gao Baiyu/Caixin