China Online Education Group Inc. (COE) stock fell during current market. Here’s the update

ZSAN Stock
ZSAN Stock

China Online Education Group Inc. (COE) stock declines by 13.91% in the current market trading. China Online Education Group is a major Chinese online instruction platform with a focus on English education. The aim of the company is to make high-quality education more accessible and inexpensive.

Recent Development in COE stock

China Online Education Group has reported an important development that The Thoughts on Further Lessening the Stress of Homework and After-School Tutoring for Students in Mandatory Education were released on July 24, 2021, by China’s official state media, including Xinhua News Agency and China Central Television. It was released by the CPC Central Committee’s General Office and the State Council’s General Office.

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The Opinion includes high-level policy instructions on standards and limits for online and offline after-school tutoring programs, such as:

  • Academic AST Institutions, which provide after-school assistance on academic topics under China’s mandatory education system, must be recognized as non-profit.
  • Switching from a registration-based system to a government-approved system for running online Academic AST Institutions.
  • Prohibition of foreign teachers from offering tutoring services in China.
  • Foreign ownership is banned in Academic AST Institutions, including via contractual agreements, and enterprises having foreign ownership must correct the situation.
  • It is illegal for publicly traded corporations to raise funds to invest in enterprises that teach academic topics in compulsory education.
  • Throughout public holidays, weekends, and school breaks, academic AST institutions are forbidden from offering tutoring services on academic subjects in mandatory schooling.
  • Academic AST Institutions must adhere to fee norms set by appropriate authorities.


COE will continue to respect all applicable laws and regulations while delivering educational opportunities, such as those that will be enacted in response to the Opinion’s policy directions. The contents of the Opinion are being carefully considered by the Company, and their consequences for the Company’s operations are being assessed. The Opinion, associated laws and regulations, and COE’s compliance procedures are expected to have a substantial negative impact on COE’s results of operations and prospects. In order to conform to the Opinion and any associated laws and regulations, COE will seek advice from and work with government officials on a proactive basis.


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