Pity investors in Chinese education stocks.

After spending most of 2022 on life support, shares of Chinese private education companies New Oriental Education & Technology (NYSE: EDU), TAL Education (NYSE: TAL), and Gaotu Techedu (NYSE: GOTU) finally caught a second wind in December, when the Chinese government repealed its zero-COVID policy and began to reopen its economy. With just 60 hours or so to go before the calendar flips to 2023, however, China is pulling the rug out from under investors again -- and announcing new regulations on education companies.

New Oriental shares are down 5.5%, TAL is tumbling 7.2%, and Gaotu is leading the whole sector lower with a 10.2% loss as of 10:05 a.m. EST.

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Source Fool.com