Doubts over HK education IPOs after China rules

By John Loh
17 Nov 2016

An unexpected change to China’s education policies that threatens to upend the business model of private schools has put a question mark over some of their Hong Kong IPOs.

Two weeks ago the National People’s Congress barred private, for-profit schools from teaching first- through to ninth-graders, according to a government document.

Since the announcement, shares of China Maple Leaf Educational Systems and Virscend Education Co in Hong Kong have been in freefall, reflecting the regulatory uncertainty ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial