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].