China Edutech Surge Lures Investors as US Melts Down
- New Oriental and its online unit Koolearn rallied this month
- Stocks benefit from easier monetary policy, looser Covid curbs
The New Oriental Education & Technology Group Inc. application.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The rapid revival of Chinese education companies’ business is boosting investor appetite for the stocks that bore the brunt of Beijing’s yearlong regulatory crackdown.
A bellwether of the sector, New Oriental Education & Technology Group Inc., has almost doubled in the past 30 days, turning itself from one of the worst-performing US-listed Chinese stocks since the clampdown into the best this month. Its unit Koolearn Technology Holding Ltd., which has pushed into livestreamed e-commerce alongside its classes, has surged more than 600% in Hong Kong, while the buying spree has spilled over to other players.