New | Maple Leaf shares plunge as Shanghai tightens rules on operating international schools
Foreign operators will be limited to running kindergartens and upper secondary schools, Shanghai’s education commission said
China Maple Leaf Educational Systems Ltd.’s shares plunged to their lowest in six months amid concerns that the country’s largest operator of private international schools may be affected by a move to tighten education policy in Shanghai.
Maple Leaf’s shares fell for the fourth day on Tuesday, tumbling as much as 7 per cent to HK$5.22 on the Hong Kong stock exchange, their lowest intraday level since April. The stock closed down 3.55 per cent at HK$5.43.
Foreign companies that manage schools on the mainland are limited to operating kindergartens and upper secondary schools, according to notes from an October 19 meeting of the Shanghai Municipal Education Commission, confirmed by the commission’s WeChat account.
These joint-venture operators are not allowed to operate primary and lower secondary classes outside China’s public education curriculum, the commission said, in statement reaffirming the country’s “educational sovereignty”.
The government is looking at “further regulating” private schools, according to the statement.
“There could be short term impact as investors are very risk sensitive at this moment when the market is volatile,” said Eugene Mak, an analyst at China Merchants Securities.
There could be short term impact as investors are very risk sensitive at this moment when the market is volatile