London CNN Business —
The whims of regulators in Beijing have always posed a risk to investors looking to tap into growth in China, the world’s second largest economy. But navigating a worsening crackdown on private business is becoming increasingly tricky.
What’s happening: After humbling many of the country’s top technology companies, including Alibaba and Didi, Chinese officials have turned their attention to the education sector.
New rules published over the weekend take aim at fast-growing tutoring companies, barring them from turning a profit or raising funding on stock markets. The announcement from China’s Ministry of Education has wiped billions of dollars off the market value of several major, publicly-traded education firms.
See here: New Oriental Education & Technology (EDU)plunged nearly 50% in Hong Kong on Monday. Combined with similar losses on Friday, when reports of a crackdown on the sector first emerged, the company has lost roughly $7.7 billion dollars in …