Shares of Meten EdtechX Education Group (NASDAQ:METX) stock are climbing on Thursday after the company announced important and timely news this morning.
The China-based education firm focused on English-language training revealed plans to launch online adult overseas higher education services beginning this fall. According to the release, enrollment will start in areas such as Beijing, Guangzhou and Wuhan before spreading throughout the country next spring.
This news comes amid major regulatory crackdowns by the Chinese government on a number of different sectors like technology and, of course, education companies. For these teaching firms, they have been feeling the effects since the government released new policy last month. In the policy, it is stated that “educational training institutions are banned from raising money through stock listings, while foreign capital cannot invest.”
Now, authorities in a handful of areas across the country are ordering private businesses to suspend online and offline tutoring classes for children from kindergarten to ninth grade.
With all of that in mind, Meten EdtechX said that this service is in line with The Regulations on the Implementation of the Non-state Education Promotion Law of the People’s Republic of China. And overall, the firm says that these programs “will provide flexible learning methods and learning-friendly curriculum designed for people with a need for higher education degrees from overseas institutions.”
METX stock was up 14% as of Thursday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.