(Bloomberg) Shares of online education platforms added double digits on Monday on speculation that China may relax the grip that has sent the stocks tumbling this year.
The gains followed viral videos of Koolearn Technology tutors teaching English while selling merchandise. Koolearn jumped more than 40% on Monday following the speculations.
New Oriental Education, Kolearn’s largest shareholder, also surged by double digits, together with Technology Group Inc. Scholar Education Group, rose up to 37%, while Doushen Beijing Education & Technology Inc. was up 20%.
The latest gains have reignited hopes of the Chinese education stocks, which have faced declines from their July 2020 peak. The decline follows Chinese crackdowns in which the tutoring platforms were forced to become non-profit organizations.
Qi Wang, CEO of MegaTrust Investment, is still pessimistic. He says viral clips of a New Oriental tutor were amusing and doesn’t expect the company to return to its past glory.
1797: HKG is up +39.97%, GOTU is up +2.79% in premarket, EDU is up +8.27% in premarket.
