U.S.-listed Chinese education cos dive on report of possible non-profit rules

17 Education and Technology

23/07/2021 14:21

(Updates)
    ** Shares of U.S.-listed Chinese education companies plummet
following a report that China is considering making the
businesses non-profit
    ** China will turn its vast private tutoring industry
largely into a not-for-profit sector, according to a government
document widely circulated on Friday and verified by Chinese
magazine Caixin. Reuters could not independently verify the
document.  urn:newsml:reuters.com:*:nL1N2OZ0KW
    ** Beijing aiming to make changes to the sector as hefty
tutoring fees are regarded as an impediment to one of the
country's top priorities - boosting a declining birth rate
    ** Platforms would be barred from raising capital or going
public; listed companies will be banned from investing in these
platforms.
    ** TAL Education Group  TAL.N , New Oriental  EDU.N , Gaotu
Techedu  GOTU.N  and other education companies say the
regulations have not been published and they have not received
any official notification.
    ** TAL and EDU's U.S.-listed shares set to open at over
5-year low, Gaotu Techedu  GOTU.N  set to open at record low.
    ** TAL slides 56% premarket, EDU and GOTU set to drop by
nearly a two-third.
    ** Hong Kong-listed New Oriental Education  9901.HK  sheds
more than 40%
    ** China Online Education Group  COE.N  and Zhangmen
Education Inc shares down 26%, 17 Education & Technology Group
Inc  YQ.O  down 37%

 (Reporting by Aaron Saldanha and Abhijith Ganapavaram in
Bengaluru)
 ((Aaron.Saldanha@thomsonreuters.com; +91 80 6749 1130))