HK-listed Koolearn falls, China to set prices for after-school tutoring

East Buy Holding

07/09/2021 06:03

** Shares of online education services group Koolearn
Technology Holding Ltd  1797.HK  fall 4.6% to HK$5.60, the
biggest daily percentage decline since Aug. 17 
    ** China will set price ranges for after-school tutoring
classes and will probe institutions' costs like teacher
salaries, the state planner said on Monday, after the country
barred for-profit tutoring in any school subject earlier this
year  urn:newsml:reuters.com:*:nL1N2Q80DX
    ** Citi says government recommended prices would be
implemented to both online and offline after-school tutoring
(AST) players on a non-profit basis, and the latest policies
show the government maintains its strict stance on AST control
    ** Citi believes pricing or profitability upside for AST
players could be significantly capped, and it reiterates
cautious stance towards the sector and maintains "sell" on TAL
Education  TAL.N , Gaotu Techedu  GOTU.N  and Koolearn
    ** Shares of bigger rival New Oriental Education &
Technology Group  9901.HK  gain 0.2% 
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
rises 1.4%, and the Hang Seng Tech Index  .HSTECH  surges 1.6%
    ** The Hang Seng China Enterprises Index  .HSCE  climbs 0.9%
and the benchmark index  .HSI  up 0.6%
    ** Stock of Beijing-based Koolearn had plunged 79% this year
as of last close 
    

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))