New Oriental Education & Technology Group Inc. (EDU:US), a Chinese test prep and online-education provider, fell the most since 2008 after it said the U.S. Securities and Exchange Commission was looking into its financial statements.
New Oriental’s U.S. shares (EDU:US) fell as much as 33 percent in intraday trading in New York, and were down 29 percent to $15.90 at 10:16 a.m. Before today, the shares had dropped 7.4 percent this year.
The investigation may concern whether the company appropriately consolidated the earnings of Beijing New Oriental Education & Technology, a variable interest entity, into its statement, New Oriental said today in a quarterly earnings statement. The Beijing-based company said it received the SEC notice July 13 and that it intended to cooperate with the investigation.
New Oriental is the largest provider of private education services in China, according to the statement.
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