Tal Education, New Oriental rally on draft regulations

New Oriental Education & Technology Group (NYSE:EDU) and Tal Education Group (NYSE:TAL) jumped on Thursday as China’s education ministry released draft off-campus training management regulations for comment.

• The country has been cracking down on for-profit education companies in an effort to improve equality.
• The notice states that the regulations are meant to standardize off-campus training activities, improve the quality of off-campus training, meet diverse cultural and educational needs and promote the healthy growth of teenagers.
• In 2021, the stocks tanked on expectations that for-profit tutoring would be banned with the China State council saying that companies that teach school subjects could no longer accept overseas investments.
• Tal rose nearly 10% and New Oriental was up 5%.