Ambow Education Holding Ltd. sank the most in two weeks in New York, leading declines in Chinese equities traded in the U.S., as directors resigned citing disagreement with the education company’s management.
Apollo Group Inc. , the biggest education company by enrollment and operator of the University of Phoenix, withdrew its forecast for fiscal 2011 citing regulatory scrutiny and declining numbers of new students. The shares fell about 12 percent in extended trading.
The Obama Administration is gearing up to produce tougher regulations that may reduce the amount of federal financial aid flowing to for-profit colleges, cutting the companies’ annual revenue growth by as much as a third.
Education stocks plunged after Apollo Group Inc. , the biggest education company by enrollment and operator of the University of Phoenix, withdrew its forecast for fiscal 2011 citing regulatory scrutiny and a possible 40 percent decline in new students.
The Obama administration released a proposal that would tighten for-profit colleges’ access to federal student aid , threatening growth in the industry that received $26.5 billion in U.S. funds last year.
Chinese stocks traded in New York rose the most in two weeks on prospects policy makers will take more steps to revive economic growth after a unit of its sovereign wealth fund vowed to support banking shares.