Refile: BUZZ-China after-school tutor cos schooled by gov't regs - Citi

Four Seasons Education Cayman

13/09/2018 16:00

(Specifies cos tutoring in "China" and "Chinese" regulations in
bullet 1)
    ** Cos tutoring in China face threats in the form of a new
round of Chinese government regulations, writes Citigroup in a
research note downgrading the sector
    ** Lead analyst Mark Li cuts ratings: Four Seasons Education
Inc  FEDU.N  to "sell" from "neutral," TAL Education Group
 TAL.N  and Puxin Ltd  NEW.N  to "neutral" from "buy"
    ** That said, broker maintains "buy" recommendation on New
Oriental Education & Technology Group  EDU.N 
    ** In response, FEDU down 4.7 pct, TAL off 4.4 pct, EDU
losing 1.2 pct. Puxin trading essentially flat
    ** New regulations include initiatives requiring all tutors
to get certified by YE 2018 and standardization of course names,
writes Li
    ** The group is having a rough 2018: FEDU down ~56 pct, TAL
down ~16 pct, EDU down ~26 pct
    ** NEW has lost over half its value since its Jun 15 debut

 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))