Chinese stocks are preparing for growth?

TAL Education предупредила, that complying with China's stricter rules on the K-12 extracurricular training business will hurt financial performance

Chinese stocks are preparing for growth?

Recently published official measures by the Beijing municipality make post-school service providers "subject to review and re-registration., aimed at reducing their number in several stages",-TAL Education said in a press release today.

When to buy shares?

Other suppliers will be registered as non-profit organizations in accordance with Beijing's instructions, adopted last month.

Other municipalities may follow suit., stated in the company, добавив, that they will comply with these measures.

  • "The Company's compliance with these measures will have a significant negative impact on its existing after-school training business. (AST), results of activity and financial condition",-warned TAL in a press release.

Chinese stocks look attractive in the long run Chinese stocks look attractive in the long run

"In particular,, in accordance with the Beijing measures, the Company stopped offering academic classes on AST on weekends, national holidays and during the current school holidays in Beijing. Historically, this is how it has been., that AST academic revenues during these time periods accounted for the majority of the Company's total revenue",.

TAL Education shares lost in stock market today 4%. New Oriental Education & Technology $EDU fell on 7% .

The relative strength of TAL Education and EDU shares has fallen this year., which indicates a serious unsatisfactory performance compared to the index S&P 500.

Among other Chinese shares, Alibaba fell by 6.3%, JD. com lost 5%, and Tencent Holdings $TCEHY fell by 5%.

What will happen next?

China strengthens its technology regulatory measures, education and other sectors. On Tuesday, Chinese shares of Alibaba, JD. tencent holdings fell after, how antitrust regulators issued new rules, prohibiting unfair competition.

  • Yesterday, Tencent warned of new rules in the future for the Internet sector, disclosing a mixed report for the second quarter. He promised to cooperate with Chinese regulators in the field of gambling.
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Also this week, state media reported., that Chinese President Xi Jinping seeks to distribute wealth in pursuit of "shared prosperity", Bloomberg reports.

The Communist Party's Central Committee on Financial and Economic Affairs promised to "strengthen the regulation and regulation of high incomes, protect legitimate income, prudently adjust excessive incomes and encourage high-income groups and businesses to give more to society.".

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