On March 14, 2023, Seeking Alpha released an article entitled “TAL Education, Chinese ed-tech stocks slump on crackdown fears.” The article discussed how “Chinese media reports indicated the company may have flouted government regulations.” In addition, the article stated “TAL subsidiary Xueersi restarted courses that run counter to conventions put in place by Xi Jinping’s Common Prosperity drive. Specifically, courses were restarted in subjects like mathematics and English under the guise of permitted tutoring outside of core subjects. Under the “Double Reduction Policy”, tutoring in core subjects must be offered as a strictly non-profit business.”
On this news, TAL Education’s share price fell $0.68, or 10%, to close at $6.12 per share on March 14, 2023.