(Yicai Global) Oct. 14 -- Shares of Doushen Beijing Education and Technology rose after its chief executive officer loaned the private tutoring company CNY120 million (USD18.7 million).

After surging almost 7 percent earlier in the day, Doushen [SHE: 300010] ended 1.5 percent higher at CNY4.12 (64 US cents). The stock has fallen more than 90 percent after peaking at CNY52.54 in May 2015.

The term of the loan will not exceed a year, Beijing-based Doushen said in a statement late yesterday, adding that CEO Dou Xin is the company’s second-largest shareholder. Annual interest on the loan is 4.35 percent.

China introduced a series of policies in July to ease the burden of excessive homework and after-hours tutoring on students in compulsory education.

The measures included blocking private educators from offering classes outside of school hours, on public holidays and at weekends, as well as banning such firms from listing and fund-raising activities. A number of well-known players, including Wall Street English, have since gone bankrupt.

Set up in 1999, Doushen’s first-half net loss widened 127 percent to CNY213 million (USD33.1 million), while operating revenue fell 8.4 percent to CNY473 million.

The funds borrowed from Dou will be used to maintain its daily operations, including refunds to students. Doushen still has CNY78 million in unpaid tuition, it said.

Doushen also said it plans to change its place of registration to Shandong province or a city elsewhere.

Editor: Peter Thomas