Tal Education fell almost 10% and New Oriental Education dropped 4.8% after Chinese President Xi Jinping stressed the need for regulations for both online and offline after-school training institutions. GSX Techedu Inc. declined 11%.
- Xi made the remarks at a meeting earlier, according to a Xinhua report. China Online Education Group fell 13% and OneSmart International dropped 7.2%.
Xi’s comments come after a report last week that China is working on new rules to clamp down on the the tutoring industry. The changes being worked on by China’s Ministry of Education and other regulators are aimed at before-and-after school K-12 tutoring, according to the Reuters report.
Earlier this week, New Oriental Education fell after a report of unexpected regulatory tightening, according to UBS. The Shanxi Provincial Education Department released new regulations for K-12 students that include the province stopping approving new licenses for K12 AST.
Last month, Tal Education was cut to neutral at Nomura partly due to possible new tutoring regulations in China.
Yesterday, Watch New Oriental Education on potential Chinese province false advertising probe.