Here's Why New Oriental, TAL, and Other Chinese Education Stocks Plunged Today

China's government announced a wide-ranging overhaul of its for-profit education sector over the weekend. Investors reacted by selling many education-related stocks, which resulted in brutal, broad-scale declines.

Here's how shares of China's leading private-education companies performed on Monday:

The new rules will require China's tutoring companies to become nonprofit entities. They will no longer be able to raise capital in the stock market or invest in other education providers. They will also be banned from offering tutoring services during the weekends and school breaks.

Source Fool.com