New Oriental Education (EDU) Slammed on SEC Investigation; Chinese Stocks Follow Suit (SINA) (BIDU) (RENN)
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New Oriental Education (NYSE: EDU) is leading Chinese stocks lower Tuesday following disclosure of an SEC investigation earlier.
According to New Oriental's quarterly report, "On July 13, 2012, the Company was informed that the U.S. Securities & Exchange Commission (the
"SEC") had issued a formal order of investigation captioned "In the Matter of New Oriental Education & Technology Group Inc." The Company believes that the investigation concerns whether there is a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., Ltd., a variable interest entity of the Company, and its wholly-owned subsidiaries, into the Company's consolidated financial statements. The Company intends to fully cooperate with the SEC in its investigation."
Sharse are getting slammed this morning, down about 28 percent in early trading.
In addition to New Oriental, traders are getting cautious with some of its peers, including:
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According to New Oriental's quarterly report, "On July 13, 2012, the Company was informed that the U.S. Securities & Exchange Commission (the
"SEC") had issued a formal order of investigation captioned "In the Matter of New Oriental Education & Technology Group Inc." The Company believes that the investigation concerns whether there is a sufficient basis for the consolidation of Beijing New Oriental Education & Technology (Group) Co., Ltd., a variable interest entity of the Company, and its wholly-owned subsidiaries, into the Company's consolidated financial statements. The Company intends to fully cooperate with the SEC in its investigation."
Sharse are getting slammed this morning, down about 28 percent in early trading.
In addition to New Oriental, traders are getting cautious with some of its peers, including:
- Youku Inc. (Nasdaq: YOKU) - down 9 percent;
- Tudou Holdings (Nasdaq: TUDO) - down 9 percent;
- Focus Media Holding Ltd. (Nasdaq: FMCN) - down 8 percent;
- SINA Corp. (Nasdaq: SINA) - down 8 percent;
- Renren (NYSE: RENN) - down 7.2 percent;
- Baidu (Nasdaq: BIDU) - down 6.4 percent;
- Qihoo 360 Technology Co. Ltd (Nasdaq: QIHU) - down 6 percent'
- E-Commerce China Dangdang Inc. (Nasdaq: DANG) - down 5.8 percent;
- Sohu.com (Nasdaq: SOHU) - down 5 percent;
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