nline education faces a paradox: Shares rise, but big profits elusive
29 Apr 2019. global.chinadaily.com.cn
By Cheng Yu
The Chinese online education sector is caught between “fire” and “ice”, industry insiders said.
Listed companies’ shares are sparkling but big profits are elusive, they said.
“Shares of education companies are shining on both domestic and foreign bourses. The online education segment, in particular, will likely witness multiple leaders,” said Sun Haiyang, an education analyst from TF Securities.
According to an industry report, over 10 online education platforms raised 10 billion yuan ($1.5 billion) in all from capital markets and other funding channels in the first two months of this year.
This compares well with 15 billion yuan raised in the first half of last year.
In late March, Koolearn Technology Holding Ltd, a subsidiary of New Oriental Education and Technology Group Inc, debuted on the Hong Kong Stock Exchange at HK$10.68 ($1.36) and has since risen steadily to reach HK$11.16 on Friday.
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