New Oriental Jumps as Oppenheimer Reports on SEC Cooperation
New Oriental Education & Technology Group Inc. (EDU), a Chinese education service provider, climbed in New York after Oppenheimer & Co. said the company is cooperating with regulators in a probe of its financial statements.
American depositary receipts of New Oriental surged 7.2 percent to $16.67, the highest since July 16, at the close of trading in New York. Shares have climbed 21 percent since Sept. 20. The Beijing-based company fell 34 percent on July 17 after saying the U.S. Securities and Exchange Commission was investigating the consolidation of its units.
New Oriental Education “has been cooperating with the SEC closely, and the investigation appears to be entering the Q&A session,” Ella Ji, an analyst at Oppenheimer in New York, wrote in an e-mailed report today. A favorable resolution to the SEC investigation could boost New Oriental shares as much as 61 percent from yesterday’s closing price, she said.
New Oriental said in July that the SEC is investigating “whether there is a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., a variable interest entity of the Company, and its wholly-owned subsidiaries, into the Company’s consolidated financial statements.”
To contact the reporter on this story: Leon Lazaroff in New York email@example.com
To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net