Summary of “The Company Making Billions Off China’s Worried Parents”

Steven, a serious-looking 9-year-old public school student in Beijing, spent a recent Friday evening in a classroom at a tutoring center operated by TAL Education Group, cramming mathematics drills.
TAL’s initials stand for Tomorrow Advancing Life, a none-too-subtle nod to one of the biggest anxieties of middle-class families in the test-based world of Chinese education.
No one had profited from the stock’s rise more than Zhang Bangxin, TAL’s co-founder, a 37-year-old former math tutor who’s become one of China’s richest people: His TAL shares are worth about $7 billion.
TAL’s tutoring encourages students to practice the kinds of questions they’ll face on China’s exams.
The measures aimed to eliminate one of TAL’s profit centers: training for the Mathematical Olympiad, an intense competition for students up to age 20.
They were so central to TAL’s success that the company promoted them in its IPO prospectus.
At the time of the antitutoring edict, Nicky Ge, an analyst with China Renaissance Group, said the initiative could lower demand for TAL’s services, especially in math, which made up more than 60 percent of the company’s revenue last year.
Investors may be agreeing with Zhang, who says the government intervention could help TAL as tighter regulation drives smaller companies out of the market.

The orginal article.