U.S.-listed Chinese education stocks hit by revised rules

Bright Scholar Education Holdings

13/08/2018 13:39

** U.S.-listed shares of Chinese education firms drop
premarket following revised private education regulations from
Beijing which could limit them from growing through M&A
    ** Bright Scholar Education  BEDU.N  drops 21.1 pct, TAL
Education  TAL.N  down 8.7 pct, newly listed Puxin  NEW.N  drops
10.9 pct, New Oriental Education & Technology Group  EDU.N  5.7
pct
    ** Rise Education Cayman Ltd  REDU.O  off 7.1 pct, RYB
Education Inc  RYB.N  slides 14.1 pct
    ** HK-listed Wisdom Education International  6068.HK  leads
slide in education stocks on China's revised rules  urn:newsml:reuters.com:*:nL4N1V42UZ
    **  Nomura says there is some uncertainty over the
regulation stating that education groups are not allowed to
control not-for-profit schools through mergers and acquisitions,
and the change will hinder purchasing via equity interest
    ** TAL Education, recently became a target of short-seller
Muddy Waters, which said "in addition to reporting fraudulent
profits, TAL has been misleading investors about the health of
its core Peiyou business"  urn:newsml:reuters.com:*:nL4N1TF4OB  urn:newsml:reuters.com:*:nL4N1UM4CT
    ** BEDU shares down 18.7 pct YTD, while TAL off 10.7 pct  

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar.reuters.com@reuters.net))