Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. To the best of the applicable Muddy Waters Entity’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that the applicable Muddy Waters Entity believe to be accurate and reliable, and who are not insiders or connected persons of the Covered Issuers or who may otherwise owe a fiduciary duty, duty of confidentiality or any other duty to the Covered Issuer (directly or indirectly). All expressions of opinion are subject to change without notice, and neither Muddy Waters Research nor Muddy Waters Capital undertakes to update or supplement any reports or any of the information, analysis and opinion contained in them. --GSX Techedu Inc., a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters … Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more Neither Muddy Waters Research nor Muddy Waters Capital will update any report or information on its website to reflect changes in positions that may be held by a Muddy Waters Related Person. Muddy Waters Capital Founder & CIO Carson Block joined Yahoo Finance's Jen Rogers, Myles Udland, and Dan Roberts to discuss his latest short call on GSX Techedu. 6) My friend Carson Block of Muddy Waters Research was spot on in his warnings about Luckin Coffee, so investors would be wise to carefully consider his latest report about another Chinese company he believes is a fraud, online education provider GSX Techedu (GSX). The Company respects Muddy Waters' efforts. These Terms of Use govern current reports published by Muddy Waters Research and supersede any prior Terms of Use for older reports of Muddy Waters Research, which you may download from the Muddy Waters Research’s website. Muddy Waters’ misunderstanding may be because it didn’t try its live courses, or it did and ignored part of the process, a GSX spokeswoman wrote in an email. Muddy Waters Capital Founder & CIO Carson Block joined Yahoo Finance's Jen Rogers, Myles Udland, and Dan Roberts to discuss his latest short call on GSX Techedu. GSX Techedu Inc. (NYSE: GSX) Mentioned as Short at Muddy Waters This article: 73 words--> A fourth pattern “Early Joiners” is highly likely indicative of bots. 29, 2020, 12:49 PM. Muddy Waters Capital is an investment adviser with the U.S. Securities and Exchange Commission and is not registered as investment adviser in any other jurisdiction. Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest 6-page report, dated May 28, 2020.After thoroughly analyzing the report, the Company would like to respond to some of the specific allegations: GSX’s responses since consist largely of drivel, designed to obfuscate and lie. --GSX Techedu Inc., a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters … We maintain our view that GSX is a massive fraud – i.e., it is a nearly empty box. With respect to their respective research reports, Muddy Waters Research and Muddy Waters Capital makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. Neither Muddy Waters Research nor any Muddy Waters Related Person (including Muddy Waters Capital) are offering, selling or buying any security to or from any person through this website or reports on this website. In relation to the United Kingdom, the research and materials on this website are being issued only to, and are directed only at, persons who are Permitted Recipients and, without prejudice to any other restrictions or warnings set out in these Terms of Use, persons who are not Permitted Recipients must not act or rely on the information contained in any of the research or materials on this website. GSX Techedu is a “near-total fraud” and worthless, according to one investment firm. You agree that each Muddy Waters Related Person is a third-party beneficiary to these Terms of Use. On May 20, Muddy Waters tweeted in response to GSX. The reports are the property of the applicable Muddy Waters Entity that published that report. You accept all risks in relying on the information on this website. Muddy Waters will continue to disclose more evidence for further explanation. Post was not sent - check your email addresses! Despite their recent swoon, the ADRs are still up 36% this year through Wednesday, outperforming peers New Oriental Education & Technology Group Inc. and TAL Education Group. Share this article. Muddy Waters is short GSX Techedu. Muddy Waters Research says at least 70 percent of the Beijing-based GSX’s users are bots and that the real number is likely 80 percent or more. Moreover, it claims corroboration from a former GSX Techedu insider. However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. In an interview with Chinese media on April 8th, he said “I think if Muddy Waters analyzes our data seriously, there is a high probability that I think Muddy Waters will not be so stupid. If you access this website, download or receive the contents of reports or other materials on this website on your own behalf, you agree to and shall be bound by these Terms of Use. According to the witness, that was how GSX initially attracted teachers to the platform. BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX… BEIJING, May 19, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest report, dated May 18, 2020. “Long holders of GSX face the … The Company respects Muddy Waters' efforts. If you are in the United Kingdom, you confirm that you are accessing research and materials as or on behalf of: (a) an investment professional falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entity falling within Article 49 of the FPO (each a “Permitted Recipient”). GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest 6-page report, dated May 28, 2020. You agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to this website or the material on this website must be filed within one (1) year after the occurrence of the alleged harm that gave rise to such claim or cause of action, or such claim or cause of action be forever barred. Muddy Waters Capital is an investment adviser with the U.S. Securities and Exchange Commission and is not registered as investment adviser in any other jurisdiction. We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. Muddy Waters Capital does not render investment advice to anyone unless it has an investment adviser-client relationship with that person evidenced in writing. Copyright © 2021 Muddy Waters Research, All Rights Reserved. BEIJING, May 19, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false Carson Block, the founder of Muddy Waters Capital LLC, has renewed his short-selling attack on Chinese after-school tutoring platform GSX Techedu Inc., which he … Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. The Company respects Muddy Waters' efforts. Read More . However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. GSX Refutes Muddy Waters Research's Follow Up Report, Stocks: NYSE:GSX, release date:May 29, 2020 Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more. Muddy Waters’ misunderstanding may be because it didn’t try its live courses, or it did and ignored part of the process, a GSX spokeswoman wrote in an email. It said it downloaded GSX's data from more than … Each report specifies the publisher and owner of that report. PRESS RELEASE PR Newswire . If you have obtained research published by Muddy Waters Research or Muddy Waters Capital in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use. After thoroughly analyzing the report, the Company would like to respond to some of the specific allegations: GSX Refutes Muddy Waters Research's Follow Up Report PR Newswire BEIJING, May 29, 2020 BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX… BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest 6-page report, dated May 28, 2020. Muddy Waters said they downloaded data from more than 200 paid K-12 education courses which equaled 54,065 unique users. You understand and agree that Muddy Waters Capital does not have any investment advisory relationship with you or does not owe fiduciary duties to you. The Company respects Muddy Waters' efforts. Muddy Water's 25-page report is detailed and explains how it came to its conclusions every step of the way. A former GSX manager corroborated our conclusions, and even detailed how GSX’s bot operations work. The educational software provider said research firm Muddy Waters “lacks a basic understanding” of its business after an assessment that at least 70 percent of GSX users are bots that dragged its stock down 7.3 percent on Monday. May 19, 2020. BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest 6-page report, dated May 28, 2020.After thoroughly analyzing the report, the Company would like to respond to some of the specific allegations: May. But MW doesn't regard this as an excuse for its fraud. For example: Chairman Chen strangely tried to dissuade us from looking at GSX last month. We are short GSX because we conclude that it is a near-total fraud. Muddy Waters is not the only firm calling them what amounts to be a total scam operation. GSX Techedu is a "near-total fraud" and at least 70 percent of users are bots, Muddy Waters Research said. BEIJING, May 29, 2020 /PRNewswire/ — GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research’s latest 6-page report, dated May 28, 2020.After thoroughly analyzing the report, the Company would like to respond to some of the specific allegations: We detailed three behaviors we were highly confident evidenced widespread bot usage: “Precise Joiners”, “GSX IP Joiners”, and “Burst Joiners”. You further agree that you will not communicate the contents of reports and other materials on this site to any other person unless that person has agreed to be bound by these Terms of Use. By downloading from, or viewing material on this website, you agree to the following Terms of Use. On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real percentage of fake users is over 80%. Despite their recent swoon, the ADRs are still up 37% this year through Wednesday, outperforming peers New Oriental Education & Technology Group Inc. and TAL Education Group. Muddy Waters says that GSX founder and CEO Larry Xiangdong Chen recently pledged at least $318 million of his own stock. Previously, GSX stated that the short report is confused and full of ignorance about its business. The Company respects Muddy Waters' efforts. GSX Refutes Muddy Waters Research's Follow Up Report PR Newswire BEIJING, May 29, 2020 BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX… PR Newswire Asia. GSX Techedu, one of China’s largest online tutoring providers, has denied allegations by Muddy Waters that it has fabricated most of its users and revenue, saying the US activist This is not an offer to sell or a solicitation of an offer to buy any security. However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. On a high-volume move, GSX Techedu (GSX -5.3%) trades lower after Muddy Waters issues a negative report.As usual, the short-selling firm doesn't hold back, calling GSX a near-total fraud. You (or any person you are acting as agent for) agree to hold harmless Muddy Waters Research, Muddy Waters Capital and its affiliates and related parties, including, but not limited to any principals, officers, directors, employees, members, clients, investors, consultants and agents (collectively, the “Muddy Waters Related Persons”) for any direct or indirect losses (including trading losses) attributable to any information on this website or in a research report. This limitation of liability applies regardless of any negligence or gross negligence of Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons. The whole thing is good reading. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Telegram (Opens in new window). Muddy Waters Capital Founder & CIO Carson Block joined Yahoo Finance's Jen Rogers, Myles Udland, and Dan Roberts to discuss his latest short call on GSX Techedu. Muddy Waters Capital is an investment adviser with the U.S. Securities and Exchange Commission and is not registered as investment adviser in any other jurisdiction. In no event shall Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons be liable for any claims, losses, costs or damages of any kind, including direct, indirect, punitive, exemplary, incidental, special or, consequential damages, arising out of or in any way connected with any information on this website. The failure of Muddy Waters Research or Muddy Waters Capital to exercise or enforce any right or provision of these Terms of Use shall not constitute a waiver of this right or provision. Muddy Waters’ report came weeks after Citron Research called GSX “ the most blatant Chinese stock fraud since 2011 .”. In the report, Muddy Waters also cited the testimony of an unidentified former manager, who told them that GSX has a room dedicated to the practice of fraudulently boosting student numbers. You agree that the information on this website is copyrighted, and you therefore agree not to distribute this information (whether the downloaded file, copies / images / reproductions, or the link to these files) in any manner other than by providing the following link: https://www.muddywatersresearch.com/research/. This website is owned by Muddy Waters Research. GSX’s response: “Muddy Waters is bluffing.” Teen Teacher Born in a poor village in northern China, Chen’s father helped him enroll in a tuition-free vocational training school for teachers. You should assume that, as of the publication date of a Muddy Waters report, Muddy Waters Related Persons (possibly along with or through its members, partners, affiliates, employees, and/or consultants), Muddy Waters Related Persons clients and/or investors and/or their clients and/or investors have a position (long or short) in one or more of the securities of a Covered Issuer (and/or options, swaps, and other derivatives related to one or more of these securities), and therefore stand to realize significant gains in the event that the prices of either equity or debt securities of a Covered Issuer decline or appreciate. The Company respects Muddy Waters' efforts. BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest 6-page report, dated May 28, 2020.After thoroughly analyzing the report, the Company would like to respond to some of the specific allegations: Techedu insider Entity only you have sufficient investment sophistication to critically assess the information, analysis opinion... Based on GSX ’ s responses since consist largely of drivel, to. Reports and other related news and updates from Muddy Waters peels back the layers, often built up seemingly! “ near-total fraud property of the way tried to dissuade us from looking at GSX month. Buy any security sycophantic law firms, auditors, and even detailed how GSX initially attracted to! That published that report fourth pattern “ Early Joiners ” is highly likely indicative of bots Use on website... 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