Shares of TAL Education Group, a leading Chinese private tutoring company, surged over 5% in pre-market trading on October 28th, as investors welcomed signs that China is gradually easing its regulatory crackdown on the industry.

According to industry sources and analysts, Beijing is quietly allowing private tutoring operators to resume and expand their businesses, spurring a nascent revival of a sector that was hit hard by a government crackdown in 2021. While there has been no formal policy reversal, local authorities are becoming more lenient, reducing inspections and providing greater clarity on permissible tutoring activities.

The shift comes as China looks to boost job creation and revive its flagging economy. In August, the State Council included education services in a 20-point plan to boost consumption, sending stocks of listed education companies higher. Meanwhile, private tutoring firms like TAL and New Oriental have been hiring for thousands of positions and reopening learning centers across the country.