In Today’s Talking Points: Chinese Education Company PuXin Plans U.S Expansion After Successful IPO; Trump Threatens Additional Tariffs on $200 Billion of Chinese Goods; University of New Hampshire to Accept Chinese GaoKao Results
Chinese Education Company PuXin Plans U.S Expansion After Successful IPO
The third Chinese education group to float shares on the U.S stock exchange this year – Puxin Ltd – has said it plans to use the bulk of its IPO proceeds to aggressively expand in China by buying up dozens of small rival education groups. Puxin saw its share price soar by 23% last week to close at $21, up from the listing price of $17. Puxin has said it aims to use 70% of the proceeds from its IPO (more than $80 million) to acquire nearly 100 smaller education service providers in China by the end of next year. China’s after-school education market is projected to grow to 805 Billion RMB in 2022, up from 480 billion RMB in 2017, with more than 100,000 after-school tutoring service providers in China last year. However the top 5 players in the market command less than 4% of the total market share, hence why they are looking for such aggressive expansion.
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Trump Threatens Additional Tariffs on $200 Billion of Chinese Goods
On Monday evening the White House released a statement threatening an extra $200 billion worth of tariffs on Chinese goods if China goes through with its promise to retaliate against US tariffs. This follows from the Trump administration’s announcement last Friday that it will impose a 25% tariff on $25 billion worth of Chinese goods, and China’s response stating outlining their own tariffs on US goods worth $50 billion. The conflict between the world’s two largest economies has caused market volatility and disruption to global supply chains as firms wait to see the outcome from the escalating trade war.
Read more on CNN
University of New Hampshire to Accept Chinese GaoKao Results
The University of New Hampshire will become the first public university in the US to accept the Chinese standardized placement test – the GaoKao. An estimated 10 million students took the 9-hour long test earlier this month, with the exam playing a crucial role in determining a person’s university entrance, career and future job prospects. China is the world’s largest exporter of students, with 377,000 students enrolled in the US tertiary education system according to government statistics. Chinese students currently make up 50% of The University of New Hampshire’s foreign student population, and the university is looking to boost these number with the acceptance of the Gaokao, making applications easier while also bringing in high-skilled talent. In addition to this, the university has launched its recruiting website in Chinese and English. However, a strong test result does not guarantee entry – students must also take an English test, conduct a video interview and provide their high school transcripts before moving along the recruitment process.
Read more on BBC