China’s private tutoring guru closes 1,500 of New Oriental schools amid Beijing crackdown
Yu Minhong, founder of New Oriental, announced that the company will start selling farm produce after closing its after-school tutoring business
Personally, I think this is a great pivot. EDU will still operate is notn-compulsory centers focusing on adult language classes and high school. It's pivot towards Agri E-Commerce is a bit odd, but considering this perfectly fits in with 'Common Prosperity' I assume it's going to get lots of preferential treatment. Not only that but CEO is getting a lot of praise for not stiffing customers and for being a model CEO. Basically, the pivot is exactly the kind that the Chinese Government would like to see. It's still a long-term play - nothing is going to happen overnight - but considering the brand name and liquidity and capital that EDU has they can definitely weather the storm and transition. Not to mention lots of government support for playing ball.
Submitted November 08, 2021 at 08:18AM by XiKeqiang https://ift.tt/3015RxV
