Shares of New Oriental Education & Technology Group (NYSE: EDU) fell 14.4% Thursday, following reports of a government crackdown on tutoring companies.
China is planning to curtail the expansion of its $120 billion private tutoring industry, according to Reuters, in an attempt to reduce the stress of school-age children and their parents. The government hopes that by reducing the costs of having kids, people will choose to have more babies -- at a time when the country's birthrate is rapidly declining.
New Oriental Education & Technology Group's stock price fell sharply Thursday. Image source: Getty Images.
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Why New Oriental Stock Plunged Today