Chinese stocks were diving today, once again on fears of a regulatory crackdown by the Chinese government. This time the focus was on Chinese education stocks as a number of news outlets reported that officials may ask Chinese tutoring companies like TAL Education Group and New Oriental Education Group to become nonprofits, a move that would have obvious consequences for investors. The fallout hit Chinese stocks broadly and came as fears have been mounting over intervention from the Chinese Communist Party.
(Bloomberg) -- China is considering asking companies that offer tutoring on the school curriculum to go non-profit, according to people familiar with the matter, as part of a sweeping set of constraints that could decimate the country’s $100 billion education tech industry. Shares sank.In rules currently being mulled, the platforms will likely no longer be allowed to raise capital or go public, the people said, asking to not be identified because the information is not public. Listed firms will
(Bloomberg) -- For over a decade, Deepinder Goyal’s Zomato Ltd. has delivered soul food from spicy dosa crepes to soft bread Pav Bhaji with curried vegetables to millions across India.Now, investors get a taste of the fast-growing food delivery giant. The startup soared more than 80% in its Friday debut following a $1.3 billion initial public offering.Zomato, the first of a generation of internet unicorns to tap India’s capital markets, has generated a seldom-seen frenzy among the local investme