Consumer Discretionary Author: Qasim Khan Jun 18, 2021 03:33 PM (GMT+8)

The finalized version of the new stricter regulations will be officially announced next week.

Stock price trend

The relevant regulations will be stricter than expected, including the prohibition of winter and summer vacation training including advertisements, regular checks on tuition fees and other aspects.

On June 16, the Ministry of Education established the Department of off-campus Education and Training Supervision. Its main responsibilities include undertaking the management of off-campus education and training for primary and secondary school students (including kindergarten), guiding the party building of off-campus education and training institutions and formulating regulatory policies.

Following the news, leading education stocks plunged. TAL fell 14%, NetEase saw a 9.3% fall, New Oriental plunged 9%, Gaotu was down 8.3% and GSX decreased by 8.3%.