Larry Chen, the founder, chairman and chief executive officer of Gaotu Techedu Inc. Photograph:( Twitter )
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.
Larry Chen, a former schoolteacher from a remote Chinese hamlet who rose to become one of the world's wealthiest people, has lost his billionaire title as his online-education business suffers.
A number of concerns have buffeted the Chinese corporation, including the country's crackdown on online education, a weaker-than-expected results projection, and the implosion of an investor.
According to the Bloomberg Billionaires Index, Chen, the founder, chairman, and chief executive officer of Gaotu Techedu Inc., is now worth $336 million after shares in his online-tutoring firm dropped by nearly two-thirds in New York trading on Friday on reports of the regulatory revision.
China issued new regulations on Saturday prohibiting enterprises that teach school curriculums from profiting, acquiring capital, or going public.
It's the latest setback for Chen, who has lost more than $15 billion in value since Gaotu's stock plummeted in late January.
In recent years, China's for-profit tutoring business has been under increased scrutiny, with excessive workloads and prohibitive expenses of a "excellent" education being highlighted.
Many young Chinese have cited the cost of education as a factor for their unwillingness to have more children, even after China officially authorised all couples to have three children this year in an effort to combat population decline.
(With inputs from agencies)