After toughening up the tone against the Chinese tech giants, the Chinese executive wants to tighten the screws on tutoring companies, a dynamic sector and some groups of which are listed in New York. In Hong Kong, the news brought down several securities on the stock market.
After tech, Chinese companies dedicated to tutoring are in turn in Beijing’s sights. Since this Friday, the actions of Chinese champions of private education mark time on the stock market. New Oriental Education, one of the market leaders, lost in session up to 40% on the Hong Kong Stock Exchange on Monday. Specializing in online courses, the company Koolearn Technology lost 35%, while China Maple Leaf Educational, which prepares students to enter foreign universities, fell 16%.
These three stocks impacted the Hong Kong Stock Exchange, which lost more than 3% at the start of the afternoon. Affected by this sharp drop, the Paris Stock Exchange also started in the red on Monday. The reason: anxious to alleviate the overload of Chinese schoolchildren and the financial pressure weighing on their parents, the Chinese government has just imposed an additional turn of the screw on the private education sector. According to new guidelines released by Beijing on Saturday, tutoring companies will now have to register as non-profit associations. In addition, they will no longer be able to give lessons on weekends, public holidays and during school holidays.