The Impact of Chinese “Double Reduction” Policy on Listed Educational Tutoring Institutions

Abstract

Nowadays, Chinese students are under tremendous pressure to study. Chinese government published a new policy called Double Reduction Policy in order to solve this problem. Double Reduction means reducing the heavy homework burden and after-school training burden of students in the stage of compulsory education. This paper introduces what is Double Reduction policy, and analyzes the advantages and disadvantages of this policy, which demonstrates that the Double Reduction policy has a generally negative impact on New Oriental in three aspects. Firstly, K9 business is prohibited by the Double Reduction policy, and the businesses of high school students and preschool children are also negatively impacted by this policy. Secondly, the policy causes a decline in stock share price. Thirdly, the policy leads to the teacher's resignations. The study puts forward three solutions on the issue of the policy's negative impact on businesses.