Jakarta, CNN Indonesia — Businessman study guidance could lose US$120 billion or equivalent to Rp1,740 trillion (assuming an exchange rate of Rp14,500 per US dollar) due to the new rules China which prohibits tutoring or private tutoring for core school subjects. Quoted from Reuters, this rule triggered a massive sell-off of tutoring company shares traded on the Hong Kong and New York stock exchanges. Bimbel New Oriental Education & Technology Group and Koolearn Technology Holding Ltd are two of the companies that will be affected by China’s new policy. The move triggered massive stock declines on the Hong Kong and New York bourses. Tutoring companies listed on both stock markets plunged in Friday trading, (23/7) and continued to fall with some stocks dropping between 30 percent and 40 percent on Monday, (26/7). China’s education industry sub-index fell as much as 14 percent on Monday (26/7). China’s new rules on private tutoring have left private education companies facing significant business repercussions. The government is stepping up regulatory oversight of the $120 billion industry that investors have been betting on in recent years. New rules released last Friday prohibit for-profit tutoring in core school subjects. This regulation is in line with efforts to increase the country’s birth rate by lowering the family’s cost of living. Under the new rules, all institutions that offer tutoring on the school curriculum will be registered as non-profit organizations, and no new licenses will be granted. Regulatory changes pose the risk of billions of dollars in loss of public and private capital entering the sector over the past few years. US stock market-listed TAL Education Group said it expects the new rules to have a material adverse impact on tutoring services. Gaotu Techedu, New Oriental Education & Technology Group, Koolearn Technology Holding, Scholar Education Group, and Beststudy China Education Group made similar statements. The new rules will result in existing online tutoring companies being subjected to extra supervision and after-school tutoring will be banned during weekends, holidays and school holidays. Curriculum-based tutoring institutions are also prohibited from raising money through IPOs or other disbursement-related activities, while listed companies will be prohibited from investing in such institutions. Scholar Education said authorities had not provided details on how the rules would apply and there was no certainty when and how they would take effect. [Gambas:Video CNN] (age/sfr) .