Now that's an education

LAST week China pulled the rug out from under the education coaching industry and the Shanghai index collapsed. Although it seemed to come without warning, the move was in fact foreshadowed earlier this year.

In May, China passed the "Opinions on Further Relieving K-9 Students Workload of Homework and After-school Training". Last week, the State Council formally co-introduced the new regulations with measures that were tougher than the industry expected.

Despite this early warning, the announcement undermined international investment confidence in China. It was an education in the importance of carefully assembling the relevant information in assessing investment in China. To the West, the termination of this thriving industry seems incomprehensible. In China, this exploitative industry was seen as a direct attack on the idea that education should be available for all on an equal basis and that the rich should not enjoy an advantage simply because they are able to afford expensive tutoring.