Last week, the Chinese government decided to overhaul its USD100bn tuition industry by declaring that education and tuition companies should be strictly non-profit and will not be allowed to use the now infamous VIE structure to raise capital from foreign investors in foreign markets. Tuition stocks subsequently crashed as exemplified by New Oriental Education crashing 70%. There is no money to be made here. It is unclear if these companies can stay listed. If they do, great, maybe you might be able to make 100-300%. But if not, then you will never see your money again.

There have always been qualms about how capitalism should not encroach certain sectors like healthcare/hospitals, public services such as waste management and, needless to say, education. If these institutions are run for profits, then they could just go full throttle to make money and fail