- Far from being a general crackdown on U.S. listed stocks, the action of the Chinese government seems to address the issues emanating from an unsustainable educational system.
- However, for those who are wondering what is coming next, it is not doomsday yet, as with scale in China and empowered with cash, TAL could diversify activities into more niche markets.
- Also, it also has an online tutoring platform and it is unlikely that the Chinese government wants to kill its $100 billion edtech industry employing hundreds of thousands.
- The stock is likely to continue on its downtrend as any support for the sector is not likely to be publicized by the authorities.
- The company has potential and investors should remain on the lookout for corporate updates.
For further details see:
TAL Education: What's Next