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And Barnes & Noble’s digital future, via the Nook, also is hurting. According to the company, sales of the electronic reading device fell short of expectations in the key month of December.

And more and more parents are choosing online and home tutoring, especially the second-child families.

An revealed, "At present, Lynk & Co’s goal is to go all out to improve its operations in China, laying a good foundation for its entry into the European market."

Andy Rothman, an investment strategist at San Francisco-based investment firm Matthews Asia, wrote in a recent analysis that China's V-shaped economic recovery continued for a fourth consecutive month in June, led by strong domestic demand.

And China Banking Regulatory Commission, the country's top banking regulator, gave the green light to the Beijing office in February.