Chinese Tutoring Firms Extend Plunge as Beijing Cracks Down
Jeanny Yu, Bloomberg News BC-Chinese-Tutoring-Firms-Extend-Plunge-as-Beijing-Cracks-Down , Jeanny Yu
(Bloomberg) A selloff in Chinese private education companies accelerated after Beijing announced reforms that rendered them âun-investable,â according to analysts.
New Oriental Education & Technology Group Inc. plunged as much as 40%, extending Fridayâs record 41% fall and after its U.S. traded shares dropped 54%. It warned in a Monday stock exchange filing that the regulations will have a material adverse impact on the company. Koolearn Technology Holding Ltd. tumbled as much as 35%, while China Maple Leaf Educational Systems Ltd. dropped 16%.
Chinese regulators on Saturday published reforms that will fundamentally alter the business models of private firms teaching the school curriculum, as Beijing aims to overhaul a sector it says has been âhij