{"id":3777898,"hash":"njwjl7xr","type":"List","name":"China Education Services - Recovering after a Bloodbath","alias":"china-education-services-recovering-after-a-bloodbath","intro":"Testing times for private education services in China, seeking firm footing after a regulatory hammering","description":"

One of the largest investment categories in Chinese U.S. listings before 2011, EdTech, the Chinese on-line platforms and off-line private education services, have been in the line of fire

\r\n

By practically banning for-profit educational services in July 2021, as they had flourished in recent years, China's leadership has exercised overwhelming power

\r\n

Collapse of equity share performance has been nothing short of disastrous

\r\n

Much chastened by mutiple billion dollar losses in market value, the largest players such as New Oriental Education and Technology or TAL Education , as well as their hard-hit competitors, were mostly ignored by investors in the following years

\r\n

In overviews of the general Chinese market retreat, official criticism of private education services has rarely been discussed

\r\n

Domestic factors in the regulatory push may have been discounted by many commentators

\r\n

However, to secure social stability, access to education is key : this is true the world over and even more so in developing societies

\r\n

Though China has made great strides in eradicating poverty, deep inequality between the coastal conurbations and the rural backyards remains an everyday reality

\r\n

Education - and professional training - the traditional stepping stones of social promotion - have stayed out of reach for 100 million Chinese families who do not live on the Eastern seaboard or in large in-land cities, for reasons we hope to discuss shortly

\r\n

To contribute to the prosperous society, promised by China's leadership, EdTech firms had their work cut out...and, with their current share run-up, they may have lived up to expectations

\r\n

The selection highlights key players next to market leaders New Oriental and TAL Education, such asYoudao Gaotu Techedu or Gravitas Education...

\r\n

A selection of low market cap, high volatility stocks is included because concentration on only 4 market leaders in a traditionally fragmented market is unlikely to last

\r\n

Originally part of the selection, companies such as Puxin, Meten, Color Star Technology, Zhangmen Education, First High School Education, Lixiang Education, Wah Fu Education, China Liberal Education Holdings, Ambow Education, Elite Education Group, Four Seasons Education (Cayman), Skillful Craftsman Education Technology, China Online Education Group and Tarena International have been set aside on basis of market caps below $50 million

","dateCreation":1634048070670.0,"datePublish":1635724800000.0,"dateUpdate":1705157864931.0,"dateUpdateComps":1683727245235.0,"image":"https://static.pininvest.com/uploads/images/lists/njwjl7xr/w4ixlcwc/default/china-education-services-recovering-after-a-bloodbath.jpg","imageSrcUsr":"Jerry Wang","imageSrcWeb":"Unsplash","imageSrcLink":"https://unsplash.com/photos/F4DgJTuBC1o","url":"/library/njwjl7xr","category":{"id":3778228,"hash":"nqmp07w3","name":"China Region","brief":"US listings (incl. OTC) of themes for China Region","description":"

International themes for China Region are curated selections of majors companies - listed on US markets or investable on liquid OTC exchanges

\r\n

Directly accessible to American investors and quoted in US dollars, selections highlight technological or industrial advances and growth stories in foreign markets

\r\n

Valuable in the light of portfolio diversification, foreign equities may not offer the same level of accounting transparency as American firms

\r\n

OTC traded shares require additional research on accounting data to corroborate market prices

","image":"https://static.pininvest.com/uploads/images/categories/nqmp07w3/t9sjux0u/china-region.jpg","imageSrcUsr":"Katherine Gu - Shanghai, China","imageSrcWeb":"Unsplash","imageSrcLink":"https://unsplash.com/fr/photos/ville-avec-des-immeubles-de-grande-hauteur-donnant-sur-la-mer-pendant-la-journee-Mh--eWi_69g"},"author":{"id":1570474,"hash":"nj9452x3","alias":"pininvest-analysis","name":"Pininvest Analysis","brief":"Experienced professionals, seeking to combine financial acumen and business expertise","image":"https://static.pininvest.com/uploads/images/contributors/nj9452x3/iy4aijon/thumb/pininvest-analysis.png"},"tags":{"sectors":[{"id":1899225,"label":"Services","key":"services","issector":true,"isstyle":false}],"styles":[],"others":[{"id":1899077,"label":"China ","key":"china","issector":false,"isstyle":false},{"id":15082036,"label":"China Middle Class","key":"china-middle-class","issector":false,"isstyle":false},{"id":245485587,"label":"EdTech","key":"edtech","issector":false,"isstyle":false},{"id":1899226,"label":"Education ","key":"education","issector":false,"isstyle":false}]},"componentsCount":10,"componentsTotal":10,"articlesCount":1,"stats":{"perf":-0.08025282104652472,"perfRankLabel":"Subpar","perfRankKey":"low","vol":0.3173192284473104,"volRankLabel":"High Risk","volRankKey":"high"},"history":[{"date":1779235200000.0,"perf":0.0},{"date":1779321600000.0,"perf":0.0047214126219097055},{"date":1779408000000.0,"perf":-0.02020551275584828},{"date":1779753600000.0,"perf":-0.011769134170492357},{"date":1779840000000.0,"perf":-0.0336866467615219},{"date":1779926400000.0,"perf":-0.027297592507092086},{"date":1780012800000.0,"perf":-0.04163996026740971},{"date":1780272000000.0,"perf":0.06571805969948484},{"date":1780358400000.0,"perf":0.014859541421243891},{"date":1780444800000.0,"perf":0.004503223521084912},{"date":1780531200000.0,"perf":-0.02071602405454072},{"date":1780617600000.0,"perf":-0.02677066866551607},{"date":1780876800000.0,"perf":-0.02677066866551607},{"date":1780963200000.0,"perf":-0.02677066866551607},{"date":1781049600000.0,"perf":-0.02677066866551607},{"date":1781136000000.0,"perf":-0.02677066866551607},{"date":1781222400000.0,"perf":-0.02677066866551607},{"date":1781481600000.0,"perf":-0.02677066866551607},{"date":1781568000000.0,"perf":-0.02677066866551607},{"date":1781654400000.0,"perf":-0.02677066866551607},{"date":1781740800000.0,"perf":-0.02677066866551607},{"date":1781827200000.0,"perf":-0.02677066866551607},{"date":1782172800000.0,"perf":-0.02677066866551607},{"date":1782259200000.0,"perf":-0.02677066866551607},{"date":1782345600000.0,"perf":-0.02677066866551607},{"date":1782432000000.0,"perf":-0.02677066866551607},{"date":1782691200000.0,"perf":-0.02677066866551607},{"date":1782777600000.0,"perf":-0.02677066866551607},{"date":1782864000000.0,"perf":-0.02677066866551607},{"date":1782950400000.0,"perf":-0.02677066866551607}],"viewType":"Sectors","viewLevel":"Level2","showYieldCurve":false}