A Chinese online tutoring empire has lost $15 billion after shares dived 98%
Larry Chen, a former school teacher who became one of the world’s richest people lost his billionaire status as China cracks down on its private education sector.
Mr Chen who is the founder, CEO of Gaotu Techedu is now worth $336 million, according to Bloomberg following his company’s share price dropping.
China’s Government 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.
“ wewill comply with the regulations and fulfill social responsibilities,”
Chen said in a statement.
Chen wasn’t the only one who saw his wealth plunge, with Bloomberg reporting other education-based companies also took a hit.
