Doubts over HK education IPOs after China rules

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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 ...

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