In fact, as long as you know a little about the stock market, you will know that the operating mechanism of domestic and foreign stock markets is different. In China, we will limit the daily limit to 10% as the basis for daily limit and daily limit, while Hong Kong stocks and US stocks do not have this limit. This is why US stocks set up a fuse mechanism to better protect the market, while the share price of New Oriental plummeted by 40% in one day, because it belongs to the Hong Kong stock market.

First, why is this happening?

In fact, the reason for this situation is very simple, that is, the state has proposed a policy of double reduction, that is, reducing extracurricular training courses. As a listed company, it bears the brunt of this policy. Although New Oriental is now focusing on adult education, under the influence of the policy, many people are still scared and sell their stocks, resulting in the stock price of New Oriental plummeting by 40% a day.

Second, what effect will this have?

From some data given by various institutions, it can be seen that most listed education companies have begun to make strategic shifts. On the one hand, they have sold their shares, on the other hand, they have started to apply for bankruptcy reorganization. It can be seen from here that they have smelled something and know that this policy is very strict. Therefore, in the long run, for a long time to come, the stock of education type may collapse.

Third, how to evaluate this reform?

This reform is really great for us young people who have just given birth to children. On the one hand, extracurricular training institutions occupy most of our expenses, which will lead to high living costs, thus reducing our quality of life. On the other hand, education and training institutions are uneven to some extent, which is difficult to distinguish. I hope that through this reform, they can be well restrained.