U.S.-listed Chinese education firms surge on report of regulatory progress

17 Education and Technology

08/11/2021 12:40

** U.S.-listed shares of Chinese education co Gaotu Techedu
Inc  GOTU.N  climb 30.4%; among top three pct gainers premarket
    ** Beijing plans to grant licenses to more than a dozen cos
to resume after-school tutoring to students in the ninth grade
and below, the Wall Street Journal reports, citing people
familiar with the matter [https://on.wsj.com/3wxy5wf
]
    ** New Oriental Education and Technology Group Inc  EDU.N ,
Meten Holding Group Ltd  METX.O , TAL Education Group  TAL.N 
jump 14.5%-20.1%
    ** Cos are the most heavily traded stocks across U.S.
exchanges
    ** China Online Education Group  COE.N , 17 Education and
Technology Group Inc  YQ.O  and Rise Education Cayman Ltd
 REDU.N  rise 12.9%, 9.9% and 6.7%, respectively
    ** Report says the new licensing arrangement will require
cos to run after-school tutoring on a non-profit basis while
still allowing profit from other businesses
    ** China had barred for-profit tutoring in core school
subjects in July and restricted new licenses, in an effort to
ease familial financial pressures that had sent birth rates
dropping  urn:newsml:reuters.com:*:nL1N2OZ17U
    

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com;))