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Gaotu Techedu, TAL Education And Other Chinese Edtech Shares Plunge As China Heightens Crackdown

Published 29/12/2022, 11:57
Updated 29/12/2022, 13:10
© Reuters. Gaotu Techedu, TAL Education And Other Chinese Edtech Shares Plunge As China Heightens Crackdown

Benzinga -

  • China looked further to tighten supervision over its battered online education sector.
  • China's move indicated its lack of preparation to unshackle the private tutoring arena despite loosening curbs on tech giants, Bloomberg reports.
  • Edtech companies plunged after the Ministry of Education published a new set of restrictions that limit the fees and operating times of private tutoring services for primary and middle school students.
  • Also Read: Tencent (HK:0700) Cuts Stake In This Chinese Edtech Firm
  • Firms offering non-curricular tutoring must end physical classes by 8:30 pm and online sessions by 9 pm.
  • The services must restrict one-time charges to 5,000 yuan ($720) and mandate a special trust account with state-designated banks for pre-paid fees.
  • Some of the prominent private tutoring companies included Gaotu Techedu Inc (NYSE: GOTU), New Oriental Education & Technology Group, Inc (NYSE: EDU), TAL Education Group (NYSE: TAL), LAIX Inc (OTC: LAIXY), and Bright Scholar Education Holdings Ltd (NYSE: BEDU)
  • Price Actions: GOTU shares traded lower by 11.7% at $2.50 in the premarket on the last check Thursday. TAL shares traded lower by 5.99% at $7.06, and EDU shares traded lower by 2.06% at $35.61.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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