Shares of top Chinese education names are tanking today after the country took another step towards tightening regulations over the sector.
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The new rules regulate tutoring fees and the duration of the services. From now on, activity at the provincial level will be audited as well. The central Chinese leadership is aiming to bring social equality and last year had taken steps to curb for-profit tutoring.
Major names in the Chinese education space have been under pressure as a result. Shares of Tal Education (TAL), Gaotu Techedu (GOTU), and New Oriental Education & Technology (EDU) are already down about 7%, 10.5%, and 6% respectively in the pre-market session today.
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