Why New Oriental Education Stock Plunged Again Thursday
Shares of New Oriental Education (NYSE: EDU) continued its ongoing slump Thursday, as the Chinese government's crackdown on the private tutoring industry continued. Certain local municipalities are reportedly implementing the recently issued government mandates, fueling the additional stock price declines. As of 12:52 p.m. EDT on Thursday, New Oriental Education shares had shed another 10% of their value.
In mid-June, it was reported that China planned to introduce tough new regulations to govern the private tutoring industry, according to a report by Reuters. The new rules were much more stringent than previously anticipated, and could include a trial ban on both online and offline tutoring during the weekends, summer vacations, and the winter holiday breaks, weighing heavily on the consumer discretionary company's stock.
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