Skillful Craftsman Education Tech Ltd. (EDTK) Stock Exhibits Volatility Following Consideration of Regulatory Changes

Skillful Craftsman Education Tech Ltd. (EDTK) stock prices were up by 16.31% as of the market closing on October 25th, 2021. This brought the price per share up to USD41.64. subsequent premarket fluctuations have seen the stock dip by 17.07%, bringing it down to USD$1.36.

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Regulatory Changes in the Works

October 14th, 2021 saw EDTK stock announce the issuance of Opinions on Promoting the High-quality Development of Modern Vocation Education. These opinions were issued jointly by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council. These opinions consist of a set of guidelines that aim to promote the high-quality development of modern vocational education in China.

Central Authorities’ Guidelines

As per the opinions, a primary objective is to facilitate the establishment of the modern vocational-education system in China by the year 2025. By 2035, China’s vocational education is forecasted to be one of the best in the world, which will facilitate the establishment of a skilled society of workers. The opinions also highlight the importance of prioritizing training talent for emerging industries. These industries include, but are not limited to, advanced manufacturing, renewable energy, modern information technology, and artificial intelligence. The guidelines encourage vocational schools to offer majors that are tailored to meet market demand.

Additional Opinions for EDTK Stock

The opinions of the General Offices also urge vocational institutions to increase cooperation with enterprises in a bid to serve technological upgrading and product research in medium, small, and micro businesses. The guidelines also encourage these vocational schools to facilitate the improvement of the quality of teachers and innovative teaching models, as well as the promotion of overseas cooperation.

Scope of Potential Changes

Vocational education is a critical component of the national education system and HR development. The sector has a promising future as it bears the critical responsibility of cultivating diverse talents, passing on technical skill, and facilitating the promotion of employment and entrepreneurship. These opinions encourage publicly listed companies to participate in the investment in vocational education, while supporting them to cooperate with social capital. This is hoped to result in the construction of the infrastructure and practical training facilities for vocational education.

Future Outlook for EDTK Stock

EDTK stock is poised to capitalize on the expanded scope of opportunities afforded to it as a result of the government’s focus on vocational education. The company is keen to maintain its trajectory of success in a bid to usher in unprecedented growth as it anticipates positive changes in Chinese regulations. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.