From Yahoo: 2024-05-05 08:16:01

U.S.-listed Chinese stocks plummeted amid fears of increased regulation from Beijing. TAL Education Group and New Oriental Education & Technology Group Inc each dropped over 50% after China announced a ban on for-profit tutoring in core school subjects. This move deepened the recent selloff of Chinese internet stocks like Alibaba, Baidu, and Didi Global.

Beijing’s crackdown on China’s internet sector continues to rattle investors. Didi Global Inc faced a data-related cybersecurity investigation just days after its $4.4 billion IPO in New York. With Didi dropping over 40% from its IPO price, Baidu falling 50% from its record high, and Alibaba down 35% since October, regulatory uncertainty is causing significant market turmoil.

The new policy change in China threatens to devastate the $120 billion private tutoring industry and jeopardizes the listing ambitions of education firms like Alibaba-backed Zuoyebang, Tencent-backed Yuanfudao, and Classin. The KraneShares CSI China Internet ETF plunged about 9%, bringing it down nearly 30% year-to-date as regulatory concerns weigh heavily on Chinese stocks.



Read more at Yahoo: Beijing tutoring crackdown slams U.S.-listed Chinese stocks