Fitch Ratings Flora Zhu on China's Education Sector

The transcript discusses the impact of China's new education policies on tutoring companies, focusing on the inability to make profits and raise foreign capital. It examines the potential effects on company revenues, liquidity, and debt service abilities. The conversation also explores future sector regulations and government support, particularly in vocational education. The implications for the onshore and offshore bond markets are considered, noting that tighter regulations may not lead to a debt crisis due to sufficient liquidity buffers in some companies.

What sectors might be affected by the government's focus on reducing living costs and improving welfare?

How might the education sector, particularly vocational education, benefit from government support?