TAL Education fell 1.4% in premarket trading after China released some new policies on tutoring and education.
China will require every province to report on the progress of reducing homework and off-campus tutoring burdens on students every half a month, according to a new report from China’s Ministry of Education.
Chinese tutoring stocks including TAL Education gained on Monday on the idea that tighter COVID restrictions in China may benefit the sector. The tutoring stocks have plummeted in recent weeks after the government banned for-profit tutoring companies.
China late last month released new rules that companies that teach school subjects can no longer accept overseas investments. Listed firms can no longer raise capital through stock markets and vacation and weekend tutoring is prohibited.
Last week, TAL Education and New Oriental Education canceled their earning release amid regulatory developments.
Author: Josh Fineman, Seeking Alpha