Graduate schools stung by drop in Chinese applications

Graduate schools stung by drop in Chinese applications

Fri, Apr 19 2013

(Reuters) – Slowing graduate-school enrollments, including a 5 percent decline in applications from China for fall 2013, are hurting the revenues of many U.S. universities, Moody’s Investors Service said on Friday.

In a commentary, Moody’s said graduate school enrollments for the coming autumn term increased by just 1 percent, or the smallest increase in 11 years, according to data from the Council of Graduate Schools.

Private universities took the biggest blow, with applications from typically higher-paying international students off 4 percent. Public universities saw international applications go up 3 percent, Moody’s said.

Applications from China, the largest exporter of graduate students to the United States, were off 5 percent.“Falling applications from China is credit negative for many U.S. universities because Chinese students account for approximately one third of international graduate enrollments, and they tend to pay higher net tuition than domestic students,” Moody’s said.

“Another soft year of graduate enrollment in the fall of 2013 is likely to further weaken net tuition revenue growth in fiscal year 2014, especially at graduate-intensive private universities,” Moody’s said.

The turndown comes as other sources of revenue gains, including tuition increases, are thinning. But, Moody’s said, it did not expect the fall-off in overseas graduate applications to materially affect U.S. universities in the short term.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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