New Oriental leads dive in HK educational stocks after China's new rules

Scholar Education

26/07/2021 03:29

** New Oriental Education & Technology Group Inc  9901.HK 
leads the dive in Hong Kong-listed China educational stocks,
plunging 40.4% to HK$18, lowest since its listing on Nov. 9
    ** Stock has dropped more than 60% in the past two sessions;
second-biggest percentage decliner on the Hong Kong bourse and
second-biggest decliner in the Hang Seng Composite Index  .HSCI 
    ** China's private education firms are bracing for a
"material" hit to their operations after Beijing announced new
rules barring for-profit tutoring in core school subjects to
ease financial pressures on families  urn:newsml:reuters.com:*:nL1N2P2007
    ** Under the new rules, all institutions offering tutoring
on the school curriculum will be registered as non-profit
organisations, and no new licences will be granted, according to
an official document  urn:newsml:reuters.com:*:nL1N2OZ17U
    ** Shares of Koolearn Technology Holding Ltd  1797.HK ,
controlled by New Oriental Education, drop 34.8% to their lowest
since listing in March 2019
    ** Koolearn is the biggest percentage decliner in the Hang
Seng Tech Index  .HSTECH 
    ** Scholar Education Group  1769.HK  drops 48.2% to HK$1.31,
heading for its worst day since listing in June 2019;
biggest-percentage decliner in the Hang Seng Composite Index
 .HSCI  
    ** China Beststudy Education Group  3978.HK  falls 40.6% to
HK$0.63, on track for its worst day since listing in December
2018
    ** The Hang Seng Tech Index  .HSTECH  drops 3.6%, and the
Hang Seng Composite Index  .HSCI  falls 2%
    ** The Hang Seng China Enterprises Index  .HSCE  declines
2.2%, and the benchmark index  .HSI  eases 1.7%   

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))