Why China's Education Tech Stocks Are Plunging Today - New Oriental Education (NYSE:EDU), Gaotu Techedu (NYSE:GOTU), Bright Scholar Education (NYSE:BEDU)

China looked further to tighten supervision over its battered online education sector.
China's move indicated its lack of preparation to unshackle the private tutoring arena despite loosening curbs on tech giants, Bloomberg reports.
Edtech companies plunged after the Ministry of Education published a new set of restrictions that limit the fees and operating times of private tutoring services for primary and middle school students.
Also Read: Tencent Cuts Stake In This Chinese Edtech Firm
Firms offering non-curricular tutoring must end physical classes by 8:30 pm and online sessions by 9 pm.
The services must restrict one-time charges to 5,000 yuan ($720) and mandate a special trust account with state-designated banks for pre-paid fees.
Some of the prominent private tutoring companies included Gaotu Techedu Inc GOTU, New Oriental Education & Technology Group, Inc EDU, TAL Education Group TAL, LAIX Inc LAIXY, and Bright Scholar Education Holdings Ltd BEDU
Price Actions: GOTU shares traded lower by 11.7% at $2.50 in the premarket on the last check Thursday. TAL shares traded lower by 5.99% at $7.06, and EDU shares traded lower by 2.06% at $35.61.