new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your Capital is at Risk

OneSmart Education Stock Had Crashed Over 40% Premarket Before Trading Was Halted

Updated: 12 Oct 2021

OneSmart International Edun Gr Ltd – ADR (NYSE: ONE) stock crashed over 40% premarket before its shares were suspended from trading just before the open due to the high volatility.

The education company’s move to suspend all its educational programs and learning centres in China due to current policies and regulations has fueled today’s decline.

Investors reacted negatively to the news, given that the company generates most of its revenues from its Chinese operations.

new-recommended-broker-banner

Today’s move comes as many international companies operating in China reassess their strategies given the recent move by the Chinese government to rein in various industries ranging from cryptos to large tech companies.

Many analysts are faulting the Chinese government’s new rules and regulations, reaching most sectors of the country’s economy as the unnecessary meddling of the state in private businesses that should operate independently of the government.

The Chinese government has cracked down on multiple industries, drawing the international community’s criticism led by developed nations that advocate for free-market economic policies that allow private enterprises to thrive.

Investors will be watching closely to see if other educational companies operating in China will implement similar moves as they find it difficult to keep operating due to the recent regulatory changes. 

OneSmart shares were still suspended at the time of publishing in a move that could last longer until the selling pressure on its stock price diminishes.

*This is not investment advice. 

OneSmart Education stock price.

TV chart of OneSmart Education stock price 12-10-2021

OneSmart Education shares were down over 40% during premarket trading, before trading in the shares was halted ahead of the open.

Should you invest in OneSmart Education shares?

Tech stocks offer some of the best growth potential, but time and time again, traders and investors ask us “what are the best tech stocks to buy?” You've probably seen shares of companies such as Amazon and Netflix achieve monumental rises in the past few years, but there are still several tech stocks with room for significant gains. Here is our analysts view on the best tech stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .