China Education hits record low on policy risk concerns, rivals drop

China Kepei Education

27/01/2022 03:49

** Shares of China Education Group  0839.HK  lead plunge in
Hong Kong-listed educational stocks, dropping 19.3% to HK$5.21,
lowest since debut in December 2017
    ** Stock set for third session of declines; second biggest
decliner in Hang Seng Composite Index  .HSCI  and among top 10
decliners on the Hong Kong bourse
    ** Citi says stocks of higher and vocational education
players tumbled on rising investors concerns on policy downside
risks, including listed firms can't hold any school assets,
can't expand through M&A, and can't raise tuition fees 
    ** "We have not seen concrete evidence related to the
concerns and these concerns seem to contradict with the earlier
gov't support policy on vocational education," Citi wrote in a
research note, adding firms it covered were not aware of related
new policies
    ** Shares of Cathay Educaton  1981.HK , China East
 0667.HK , Koolearn  1797.HK , Hope  1765.HK , Scholar  1769.HK 
and China Maple Leave  1317.HK  drop between 5.6% and 13.1% 
    ** Yuhua  6169.HK , Kepei  1890.HK , New Higher Education
 2001.HK  fall 4.2% to 7.4% 
    ** China Education also says co-chairmen Yu Guo and Xie
Ketao had bought an aggregate 1.4 mln shares, or 0.06% stake, in
the open market raising their holding to 62.84%  urn:newsml:reuters.com:*:nFWN2U60XF
    ** Hang Seng Composite Index  .HSCI  drops 2.2% and Hang
Seng Index  .HSI  falls 2.1%


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