- Chinese tutoring companies Tal Education (NYSE:TAL), New Oriental Education (NYSE:EDU) and and GSX Techedu (NYSE:GOTU) rose in premarket trading after officials denied speculation that the Beijing’s Haidian district banned students from after school tutoring in the summer.
- There was speculation on the Web on Sunday that Beijing Haidian district was about to release rules that would ban after school tutoring in the summer and stop institutes from putting out advertisements for enrollment. The administration denied the rumors, according to a report from the South China Morning Post.
- The rebound in the shares of the tutoring companies comes after the shares plunged the previous two days after Chinese President Xi Jinping stressed the need for regulations for both online and offline after-school training institutions at a meeting late last week.
- Tal Education rose 10% in premarket trading, New Oriental gained 11.5% and GSX Techedu advanced 6.4%. China Online Education Group (NYSE:COE) rose 7.7% and OneSmart International (NYSE:ONE) gained 2.8%.