China education stocks plunge as analysts slash forecasts

Companies pledge to 'follow spirit' of rules that wreck their business models

The new rules on tutoring companies come as Beijing scrambles to come up with measures to reduce the burden of childrearing after new census data showed a steep drop in births. © AP

CK TAN, Nikkei staff writer

July 26, 2021 17:15 JST

Updated on July 26, 2021 19:29 JST

SHANGHAI -- Shares of Chinese private education companies plunged further on Monday, as investors digested curbs on their operations announced by Beijing over the weekend.

Education stocks led the Hong Kong Stock Exchange in declines, with New Oriental Education & Technology Group sinking 47%, Scholar Education Group dropping 45.5%, China Beststudy Education Group down 42.5% and Koolearn Technology Holding tumbling 33.4%.