BUZZ-East Buy rises on sale of education business to focus on livestreaming

Reuters2023-11-22

** Shares of China's online education courses provider East Buy Holding Ltd rise 4.1% to HK$30.50, on track for the biggest one-day pct rise since Nov. 6, if gains hold

** Stock is second biggest pct gainer in Hang Seng Tech Index

** Beijing-based co says it plans to sell its education business to parent New Oriental for 1.5 bln yuan ($208 mln) cash

** Says it will no longer operate in the online education space after the disposal but will become a pure-play private label products and livestreaming business operator

** Daiwa says the disposal comes as no surprise as the company management had expressed the intention to reallocate the resources within New Oriental and East Buy to better focus on new livestreaming ecommerce business

** New Oriental's Hong Kong shares rise 3%

** Both Hang Seng Tech Index and Hang Seng Index

slip 0.1%

** East Buy down 42.2% YTD

($1 = 7.2111 Chinese yuan renminbi)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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