Chinese education stocks tumble on report of tighter rules for sector

Scholar Education

29/12/2022 14:09

** Shares of U.S.-listed Chinese online education firms
Gaotu Techedu Inc  GOTU.N , TAL Education Group  TAL.N  and New
Oriental Education & Technology Group Inc  EDU.N  fall between
6.8% and 13.4% premarket
    ** Companies track the drop in their domestic counterparts
after a Bloomberg News report that China's ministry of education
published a new set of restrictions 
    ** The new restrictions limit the fees and operating times
of private tutoring services for primary and middle school
students - media report
    ** Shares of HK-listed Scholar Education Group  1769.HK 
fell as much as 26% by close, while HK shares of New Oriental
Education & Technology Group  9901.HK  ended the day 6% lower
    ** New rules also limit one-time charges to 5,000 yuan
($720) and mandate a special trust account with state-designated
banks for pre-paid - media report 
    ** Most of the other China ADRs rise in premarket trading,
with e-commerce firms Alibaba Group Holding  BABA.N  and
Pinduoduo Inc  PDD.O  adding 0.9% and 1.7%, while Baidu  BIDU.O 
rises 1.3%
 (Reporting by Bansari Mayur Kamdar in Bengaluru)
 ((BansariMayur.Kamdar@thomsonreuters.com;  Twitter:
@BansariKamdar;))