BEIJING: A selloff in Chinese private education companies deepened on Monday after Beijing announced a sweeping overhaul that threatens to up-end the $100 billion sector and jeopardize billions of dollars in foreign investment.
New Oriental Education & Technology Group Inc. plunged as much as 40%, extending Friday’s record 41% fall and after its U.S. traded shares dropped 54%. It warned in a Monday stock exchange filing that the regulations will have a material adverse impact on the company.
Koolearn Technology Holding Ltd. tumbled as much as 35%, the biggest drag on the Hang Seng Tech Index, which fell 5.2% to its lowest since September 2020. China Maple Leaf Educational Systems Ltd. dropped 16%.
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