HONG KONG—China confirmed it would take drastic steps to restrain the country’s booming after-school tutoring industry, prompting further selloffs in stocks such as New Oriental Education & Technology Group Inc. on Monday.
The restrictions, published over the weekend by state media,are the most recent regulatory assault on a fast-growing part of the Chinese economy. They follow a monthslong crackdown onthat has rattled companies such as Alibaba Group Holding Ltd. , its unlisted sister company Ant Group Co., and ride-hailing giant Didi Global Inc.
New Oriental’s Hong Kong-listed shares, which had lost more than two-fifths of their value on Friday, crashed by an additional 37.5% on Monday morning in the city, giving the company a market value of about $4.2 billion, according to FactSet. The company, whose primary listing is in the U.S., has lost nearly $30 billion of market capitalization since its shares peaked in mid-February.
Chinese parents are being fear fed by these educational tutoring companies that their child will be left behind unless they spend more money. A child’s place is to spend much of its childhood playing. The government is right to come heavily on these billion dollar industry.
Planning economy is coming back in China. Too bad.
Dangerous Path
Student Loan scam averted in China.
This is communism.
nice
They want people to have more babies
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Source: CNBC - 🏆 12. / 72 Read more »