Understanding the Market | Education Stocks Rise Collectively, YUHUA EDU's Colleges Approved for Profit Transition, Institutions Say It Will Boost Sentiment in the Private Education Sector in the Short Term
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Education stocks collectively rose, with China East Education up 6.64%, New Higher Edu Group up 5.98%, YUHUA EDU up 3.28%, and CHINA EDU GROUP up 1.88%. YUHUA EDU's Hunan University of Foreign Economics and Trade received approval to transition to a for-profit model. Guoyuan International pointed out that this move has a short-term uplifting effect on the sentiment of the private education sector and may encourage other schools to consider transitioning. For-profit schools help listed companies with dividends; although short-term costs increase, long-term market revaluation of assets will be achieved
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