New Oriental to expand 30% on college entry demand

New Oriental Education & Technology Group (EDU.NYSE), China’s largest private-education company, will expand its facilities by 30% as demand for college entrance exam preparation services grows, Bloomberg reported. The company said that enrollment in the its college exam prep classes continues to exceed expectations as incomes rise and the one-child policy increases education spending per student. According to a survey by Horizon Research Consultancy Group, parents in first-tier Chinese cities spend roughly one-third of their incomes on their children’s education. Third-quarter income rose by US$0.36 per share, beating the median forecast, and the stock price leapt up 8.5% yesterday. New Oriental also provides language-training classes for the Graduate Management Admissions Test (GMAT). The company plans to add 96 new learning centers to its existing 324 and expand into three or four new cities.