Why Chinese Education Stocks Are Trading Sharply Lower Today

Chinese education stocks are trading sharply lower Friday after a Bloomberg report suggested that China is considering asking tutoring firms to transition into non-profits, as the country continues its crackdown on the industry. 

At last check Friday, the following companies were all trading significantly lower:

• Bright Scholar Education Holdings Ltd BEDU was down 27.4% at $2.97.
• China Online Education Group COE was down 34.1% at $4.40.
• New Oriental Education & Technology Group Inc EDU was down 62.50% at $2.39.
• Gaotu Techedu Inc GOTU was down 58.80% at $3.96.
• OneSmart International Education Group Ltd ONE was down 26.70% at 77 cents.
• RISE Education Cayman Ltd REDU was down 18.90% at $1.84.
• TAL Education Group TAL was down 57.10% at $8.85.
• 17 Education & Technology Group Inc YQ was down 39.10% at $1.40.
• LAIX Inc LAIX was down 6.34% at $1.33.