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. Gaotu “will comply with the regulations and fulfill social responsibilities,” Chen said in a statement on Weibo, a Chinese Twitter-like service, late on Saturday night. Chen wasn’t the only one who saw his wealth plunge.
mandag 26. juli 2021
Chinese Education Tycoon Loses $15 Billion as Shares Plunge 98%
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. Gaotu “will comply with the regulations and fulfill social responsibilities,” Chen said in a statement on Weibo, a Chinese Twitter-like service, late on Saturday night. Chen wasn’t the only one who saw his wealth plunge.
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. Gaotu “will comply with the regulations and fulfill social responsibilities,” Chen said in a statement on Weibo, a Chinese Twitter-like service, late on Saturday night. Chen wasn’t the only one who saw his wealth plunge.
