Four Seasons Education (NYSE:FEDU) jumped 45% as some Chinese Education stocks continue struggling with regulations. The Chinese government is looking to spur economic growth, and it is forcing for-profit education firms to be non-profits.
However, others such as FEDU have been gaining considerably with savvy trading strategies such as the latest buyback.In July, the Communist Party sought to tighten education sector regulations in a bid to make educational tools accessible and create a plan for boosting economic growth.The regulation is in line with others seeking to benefit eventually, such as loosening child policy restrictions.
Despite the company making life hard for tutoring first, some have pivoted to other ventures. For instance, Meten Holding Group (NASDAQ: METX) has turned into blockchain while GaotuTechedu (NYSE: GOTU) is turning to teach English to adults to skirt the regulations.Interestingly Four Seasons has been holding up industry regulation and offering regular updates regarding its compliance. Therefore, with the buyback happening over the coming year, FEDU is worth watching.
Market Reaction:
On Thursday, FEDU stock soared 43% at $0.83 with more than 18.32 million shares, compared to its average volume of 235K shares. The stock has moved within a range of $0.6750 – 0.8490 after opening the trade at $0.8357.
