Friday, 23 July, shares of the organization from China TAL Education (NYSE: TAL), offering?? educational services, hit fifty-eight percent. IN 16 hours around the city of Moscow securities on the St. Petersburg Stock Exchange are traded at 9 $. TAL drops 59% on New York premarket, to 8,3 $. The shares of the rest of the educational companies also fell very much on the Hong Kong stock exchange.: Koolearn Technology (HKG: 1797) - twenty eight percent, а New Oriental Education (HKG: 9901) - forty one percent.
CNNBC, referring to the Chinese portal Caixin said, that the PRC government is imposing new restrictions on companies in the education industry.
According to Caixin, 19 July, the State Council and the Central Committee of the Communist Party of China signed a document. Companies will no longer be able to list their shares on the stock exchange., and any investments from abroad are prohibited. Cabinet intends to make the entire sector non-profit.
According to Bloomberg, local regulators will stop issuing licenses to new out-of-school education and extension companies. Existing companies will additionally inspect.
“Making this sector non-commercial is like completely destroying a branch”, - said Wu Yuefeng, fund manager Funding Capital Management.
Last month, the Ministry of Education of the People's Republic of China created a special department for monitoring personal educational sites.. Various restrictions followed later.. For instance, The regulator fined two startups for incorrect advertising. And also the power of the PRC 1 June passed a law on the protection of adolescents. Now kindergartens and personal institutions cannot teach children under the program for preschoolers, what was common practice.
Chinese authorities are trying to regulate not only the education sector. In early July, the Cyberspace Authority launched an investigation into DiDi and two other startups.. The regulator accused the companies of improper collection and storage of information. And recently it became known, that the Chinese authorities want to impose serious sanctions on DiDi: from a huge fine to nationalization and delisting from the stock exchange.
Taking into account Friday's fall, TAL shares fell by 90% below February highs. Then the securities were worth 90 $.
