TAL Stock Price Fell Over 25% Pre-Market: Why It Happened

By Amit Chowdhry ● Jul 26, 2021
  • The stock price of TAL Education Group (NYSE: TAL) fell by over 25% pre-market. This is why it happened.

The stock price of TAL Education Group (NYSE: TAL) fell by over 25% pre-market. Investors are responding negatively to a Bloomberg report that the Chinese government announced a broad set of reforms for private education companies — which are focused on seeking to decrease workloads for students and overhauling a sector that was “hijacked by capital.”

These new regulations were released over the weekend and it bans companies that teach school curriculums from making profits, raising capital, or going public. And these companies can no longer offer tutoring related to the school curriculum on weekends or during vacations. Plus they cannot give online or academic classes to children under the age of 6.

All of the major education companies said that they would comply with these new rules and they support the decisions made by the government.

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