Archegos Contagion Hits Education Stocks Already Shaken by Crackdown Rumors

New York’s shock $20 billion share sale went off like a firecracker next to China’s jittery edtech sector, which was already the subject of persistent rumors Beijing would clamp down on its core business.

The fallout continued Monday from last week’s sudden wave of block trades by U.S. private wealth manager Archegos Capital, the family office of high profile investor Bill Hwang, which were linked to a 41.56% decline in New York-listed after-school tutoring firm GSX Techedu Inc. on Friday.