Quick Take What you need to know about China’s edtech crackd | FSMOne SG - Research Highlights

Quick Take

What you need to know about China’s edtech crackdown and its impact on the tech sector

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• Considering the sweeping reforms announced by the regulators for China’s edtech sector, any meaningful recovery in the share prices of edtech companies is unlikely to materialise.

• The sell-off likely to be sentiment-driven, as the new measures should have minimal direct impact on the broader tech sector.

• The long-term growth story of the sector remains, but expect higher volatility in the near-term due to the regulatory overhang.

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