Andrew Collier
Long/short equity, event-driven

Tarena: The School That Relies On Shadow Banking

Tarena (NASDAQ:TEDU) - Execution, Not Demographics, Matter

The education sector in China is always a headline grabber. Who can resist the lure of a company that claims to reach a market of millions of students a year, young people desperate to grab the brass ring of success in China?

Better yet, education is a fragmented market with few top players. Hence the apparent happy future for China's newest entrant in the education space: Tarena International Inc., which went public in April. The company, which has trained more than 130,000 students, offers distance education, classroom-based tutoring and online learning modules, mainly in IT subjects.

IPO Prospectus

But, as with most Chinese companies, execution matters more than demographics. Tarena is...

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