RTTNews | Jul 26, 2021 12:46PM EDT

12:46 Monday, July 26, 2021 (RTTNews.com) - Chinese education industry crumbles as the government mandates them to turn non-profit on July 24. Youdao Inc (DAO) lost 30% on Monday and are currently lower than their opening day in the Street.

To operate as a K-12 private tutoring company, the companies must turn non-profit. The organizations need to conform to the rules, regulations and requirements set by the regulatory authorities. The companies also cannot use tutoring as a business and cannot raise funds through any listings. Foreign investments will be not allowed as well.

There will be steps taken against the companies violating the rules.

The shares of the company are trading $8.45, down$4.24 or 33.41% lower than its previous close at $12.69. The shares opened at $9.46 in the morning and in the 52-week period, the shares have ranged between $8.10 and $47.70

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