Beijing’s crackdown on education got Wall Street’s attention anew on Monday, with more downgrades for U.S.-listed shares as analysts tallied up damages.
On Friday, J.P. Morgan cut shares of New Oriental Education & Technology Group EDU, -31.06%, TAL Education Group TAL, -22.58% and Gaotu Techedu GOTU, -28.69%, after media reports that the Chinese government is considering new regulations concerning after-school tutoring services.
Those reports were confirmed on over the weekend, in restrictions published by state media under the title “Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education.” New Oriental and Gaotu were down another 12% each on Monday, following Friday’s action that saw respective 54% and 65% falls for those companies. Shares of TAL Education slid another 13% on Monday, after plummeting 71% on Friday.
Beijing’s moves are aimed at trying to curb soaring educational costs that have discouraged families from expanding.
