Shares of Chinese education companies plummeted today following a report that the Chinese government is about to impose a variety of strict regulations on the sector. Fears and rumors have been swirling for months, rattling investors and weighing on Chinese education stocks. Additionally, Morgan Stanley downgraded some of the companies based on expectations of stringent rules. As of 11:15 a.m. EDT, here's how prominent Chinese education stocks were faring:

Reuters reports that the government crackdown is both imminent and worse than expected. The regulations will include trial bans on vacation tutoring as well as strict rules around advertising. The rumored trial ban could crush private tutoring companies and cut off as much as 70% to 80% of revenue, according to the report. The regulations will be imposed on nine areas before being implemented more broadly across the Middle Kingdom.

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