FEAR, that's right ! This is a very expensive word and one that can drives multibillion of dollars into markets worldwide. One classic example is the education industry in China. Only two over years ago, the China regulatory bodies came down hard on the industry, wiping billions off the market, imposing stringent measures and forced many companies to go under.
It is a deeply entrenched fear that many parents have towards education, perhaps more so in the rural areas of China where parents at their time were denied of education or were forced to work at an early age. Thus, they will resort to all means - selling houses, borrowing money from relatives just to send their kids to colleges, tuition and all.
Expectations will lead to demand for such services and enough demand will create more supplies, competition and a scary trend begins to emerge. Looking at this stock, we can see the stratospheric rise in its share price and how an announcement over night can plunge the stock to more than 70-90% down!!!
Many parents up till today still believe with good grades , their children will be assured of a stable and "face-worthy" job , one that they will not "lose face" when bragging to their relatives. Such "face-conscious" attitude has invariably drives these innocent children to anxiety, stress, depression and even suicide (sadly).
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