Group 1 - The stock of Dongfang Zhenxuan (1797.HK) experienced significant volatility on August 19, with an initial surge of over 23% in the morning, reaching a new intraday high since February 2023, followed by a sharp decline of 20.89% by the close, settling at 34.32 HKD [1] - A rumor circulated online regarding New Oriental CEO Zhou Chenggang being investigated by regulatory authorities for allegedly misappropriating company interests through related-party transactions, which was later denied by New Oriental as a false claim [1] - Prior to this volatility, Dongfang Zhenxuan had shown strong performance, with a monthly increase of 85% in July and a cumulative rise of 144% in August [4] Group 2 - Following the announcement of Dong Yu Hui's departure from Dongfang Zhenxuan in July 2023, the stock plummeted over 23% on the first trading day after the news, resulting in a market value loss of 3 billion HKD and hitting a low of 8.92 HKD during intraday trading [4]

Core Viewpoint - The stock price of Oriental Selection experienced significant volatility, initially surging over 23% before plummeting by 20.89% amid rumors of regulatory investigations involving CEO Zhou Chenggang [1][7]. Group 1: Stock Performance - Oriental Selection's stock saw a dramatic increase of over 23% in the morning session, followed by a sharp decline of 20.89% in the afternoon [1][7]. - The stock's performance reflects market sensitivity to rumors and potential regulatory scrutiny [1]. Group 2: Rumors and Responses - Reports emerged suggesting that CEO Zhou Chenggang might be involved in related party transactions under investigation by regulatory authorities, which Oriental Selection has categorically denied as rumors [1][3]. - The company’s investment relations director stated in a group chat that there is no truth to the rumors, emphasizing that they are in a quiet period regarding their annual report [1][3]. - Founder Yu Minhong also labeled the claims as completely false, and the company has initiated legal actions against the spread of such rumors [3]. Group 3: CEO Background - Zhou Chenggang, CEO of New Oriental Education Technology Group, has a diverse background, including roles as a teacher and journalist before joining New Oriental in 2000 [6]. - He has held various leadership positions within the company and was recognized in the Forbes China Best CEO list in 2024 [6].

Core Viewpoint - New Oriental Group CEO Zhou Chenggang is under investigation for allegedly misappropriating company interests through related party transactions, leading to panic selling among investors [1][4]. Company Background - Zhou Chenggang has been with New Oriental since 2000, serving in various roles including principal and president, and became CEO in 2016 [1][3]. - Zhou and co-founder Yu Minhong have a long-standing partnership, having met during their high school entrance exams in 1980 [1]. Market Reaction - On August 19, New Oriental's stock price plummeted by 20.89%, closing at HKD 34.320 per share, with a total market capitalization of HKD 359.13 billion [4][5]. - The stock opened at HKD 43.000 and reached a low of HKD 34.000 during the trading session, with a trading volume of 225 million shares [5]. Company Response - The investor relations director of Oriental Selection, a subsidiary of New Oriental, denied the allegations, stating that the company is in a quiet period for its annual report [6]. - In response to rumors regarding high commission rates exceeding 30%, the company clarified that its actual average commission rate is below 20% and has initiated legal actions against the spread of false information [7].

Core Viewpoint - The stock price of Oriental Selection dropped significantly on August 19 due to rumors regarding the CEO of New Oriental, Zhou Chenggang, being investigated for alleged related-party transactions that could harm the interests of the listed company [1] Group 1 - Oriental Selection responded to the rumors, stating that the claims about Zhou Chenggang being under investigation are false [1] - Zhou Chenggang is known as a long-time partner of Yu Minhong, the founder of New Oriental [1]

【#新东方辟谣CEO被调查#】8月19日下午，一条关于新东方CEO周成刚"涉嫌通过关联交易侵占上市公 司利益，已被监管部门立案调查"的消息在网络广泛传播，对此，新东方回应@21世纪经济报道 记者 称，纯属谣言，将发布正式声明。 ...

Group 1 - The CEO of New Oriental Group, Zhou Chenggang, is rumored to be under investigation by regulatory authorities for allegedly misappropriating company interests through related party transactions [1] - New Oriental's management has denied these allegations, labeling them as rumors and awaiting official clarification [1] - Zhou Chenggang has been with New Oriental since 2000, holding various positions including President and CEO since September 2016 [1] Group 2 - On the same day, both Oriental Selection and New Oriental's Hong Kong stocks experienced a decline, with Oriental Selection dropping over 20%, reaching a stock price of 34.32 HKD per share [3]

Group 1 - The stock price of Dongfang Zhenxuan experienced significant volatility, initially surging over 23% in the morning before plummeting to a 20.89% decline by the end of the day [2] - There are reports suggesting that New Oriental's CEO, Zhou Chenggang, may be under investigation by regulatory authorities for potential related-party transactions [2] - Dongfang Zhenxuan has responded to these allegations, stating that they are purely rumors [2]

Core Viewpoint - New Oriental Group has issued a statement denying rumors regarding CEO Zhou Chenggang being investigated for allegedly misappropriating company interests through related-party transactions, labeling the news as false and malicious [1][5][7]. Group 1: Company Response - New Oriental Group has reserved the right to pursue legal action against those spreading false information that infringes on the rights of CEO Zhou Chenggang and the company [1]. - Oriental Selection, a subsidiary of New Oriental, has also announced that it has initiated legal proceedings against the rumors, emphasizing a commitment to pursue the matter thoroughly [2][6]. Group 2: Market Impact - The rumors led to a significant drop in the stock price of Oriental Selection, which fell by 20.89% to HKD 34.32 by the close of trading on August 19, after reaching a two-year high of HKD 53.7 earlier in the day [7]. - The market reaction was characterized by panic among investors, triggered by the unverified claims about regulatory investigations [5]. Group 3: Commission Rate Clarification - New Oriental clarified that the claim regarding Oriental Selection's commission rate being over 30% is inaccurate, stating that the actual average commission rate is below 20% [6].

Core Viewpoint - New Oriental has issued a stern statement denying rumors that its CEO, Zhou Chenggang, is under investigation by regulatory authorities for allegedly misappropriating company interests through related-party transactions. The company asserts that these claims are false and have severely infringed upon the legal rights of both Zhou Chenggang and the company itself. The company reserves the right to pursue legal action against those who maliciously spread false information [1]. Group 1 - New Oriental's CEO Zhou Chenggang is not under investigation, contrary to circulating rumors [1] - The company emphasizes that the rumors are baseless and constitute defamation [1] - Legal action may be taken against individuals spreading false information [1]

Core Viewpoint - The stock price of Dongfang Zhenxuan experienced significant volatility, initially surging over 23% before plummeting by 20.89% in the afternoon, amid rumors of regulatory investigation involving CEO Zhou Chenggang [1] Company Response - Dongfang Zhenxuan has officially denied the rumors, stating that they are purely unfounded [1]