Written by: Ermat
Proofread by: Ermat
The New Oriental stock market plummeted 40.61% and Think Happy Education plunged 28.53%, according to Oriental Fortune on July 23. This is the biggest single day drop in the history of the New Oriental stock market.
The drop in Chinese education stocks is related to a document circulating online. The document was issued by the General Office of the Central Committee of the Communist Party of China. According to the document, existing subject-based training institutions are not allowed to raise funds through IPOs. Listed companies are not allowed to raise funds for them through the stock market. They are not allowed to purchase the assets of subject-based training institutions by issuing shares or paying cash. Foreign investment is prohibited.
The real reason why the CCP wants to do this is that the CCP wants to have complete control over the education of students in order to brainwash them. The CCP does not allow training institutions to have long-term access to students.