Education Stocks Could Offer Bargains – For Those Who Choose Correctly

Massive selloff saw Chinese educator stocks fall as much as 70% on Friday on fears government could ban them from operating for profit Key points: Latest government ‘opinion’ document could ban private after-school education companies from operating on for-profit basis Policy is likely to meet with industry pushback, and also protest from parents who see it as too extreme By Doug Young This week may look like any other for most people, but it has turned into a sudden life-or-death situation for many of China’s private education companies. The group…

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School Operator Hailiang Expands Franchise Model with Private Sector Tie-Up

Deal will see company take over management of two privately owned schools for the first time Key points: Hailiang has expanded its franchise-style business model with a new agreement to take over two privately owned schools in Shandong province The company is unlikely to be affected by the crackdown on private educators due to its focus on primary rather than extracurricular learning By Doug Young As a Sept. 1 “day of reckoning” fast approaches for China’s new generation of private education companies, one name that appears to be positioned above…

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