The Chinese K-12 tutoring company responded to the reports saying that it has not received any official notification from the People’s Republic of China and that the new reported regulations haven’tbeen published.
Still, TAL dropped 50% Monday as investors expect the PRC to continue the increased pressure it has placed on publicly traded stocks over the past few months.
New Oriental put out an almost identical statement saying that regulations have not been published and that it has not received any correspondence about potential new regulations.
Since then, TheStreet’s Jim Cramer has cautioned investors to stay away from Didi and other Chinese stocks due to the potential interference from the country’s communist government.
The country launched a cybersecurity review into firms newly listed in the U.S., saying it was looking to prevent data security risks and protect national security.