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 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. 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). The reports are the property of the applicable Muddy Waters Entity that published that report. Copyright © 2021 Muddy Waters Research, All Rights Reserved. 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… However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. We detailed three behaviors we were highly confident evidenced widespread bot usage: “Precise Joiners”, “GSX… more, We are short GSX because we conclude that it is a near-total fraud. However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. 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. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision and rule that the other provisions of these Terms of Use remain in full force and effect, in particular as to this governing law and jurisdiction provision. You represent that you have sufficient investment sophistication to critically assess the information, analysis and opinion on this website. 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. 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/. 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). Moreover, it claims corroboration from a former GSX Techedu insider. We refer to Muddy Waters Research and Muddy Waters Capital collectively as “Muddy Waters” and individually these entities are referred to as a “Muddy Waters Entity”. 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 use of the research on this website is at your own risk. 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%. 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. The Company respects Muddy Waters' efforts. Copyright © 2021 Muddy Waters Research, All Rights Reserved. Now what. You accept all risks in relying on the information on this website. 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. 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. 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 Company respects Muddy Waters' efforts. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more We detailed three behaviors we were highly confident evidenced widespread bot usage: “Precise Joiners”, “GSX IP Joiners”, and “Burst Joiners”. Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more. --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 … It said it downloaded GSX's data from more than … Muddy Water's 25-page report is detailed and explains how it came to its conclusions every step of the way. GSX Techedu is a “near-total fraud” and worthless, according to one investment firm. 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 peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. 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. 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. 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”). Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. “Long holders of GSX face the … You knowingly and independently agree to submit to the personal and exclusive jurisdiction of the state and federal courts located in San Francisco, California and waive your right to any other jurisdiction or applicable law, given that Muddy Waters Research and its affiliates are based in San Francisco, California. If you access this website, download or receive the contents of reports or other materials on this website as an agent for any other person, you are binding your principal to these same Terms of Use. Making GSX’s denials even more farcical is that it openly recruits engineers to help it run bot farms, which we show in this report. 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. Each report specifies the publisher and owner of that report. The whole thing is good reading. 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 Previously, GSX stated that the short report is confused and full of ignorance about its business. Muddy Waters Research, Muddy Waters Capital and/or the Muddy Waters Related Persons intend to continue transacting in the securities of Covered Issuers for an indefinite period after an initial report on a Covered Person, and such person may be long, short, or neutral at any time hereafter regardless of their initial position and views as stated in the research report published by Muddy Waters Research or Muddy Waters Capital. GSX Refutes Muddy Waters Research's Allegations. GSX Techedu Inc. May 29, 2020, 06:49 ET. PR Newswire Asia. The Company respects Muddy Waters' efforts. Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. A former GSX manager corroborated our conclusions, and even detailed how GSX’s bot operations work. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. 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. 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. Sorry, your blog cannot share posts by email. Further, any report on this site contains a very large measure of analysis and opinion. According to the witness, that was how GSX initially attracted teachers to the platform. GSX Techedu Inc. (NYSE: GSX) Mentioned as Short at Muddy Waters This article: 73 words--> 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: Muddy Waters Research is affiliated with Muddy Waters Capital. However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. You further agree that any dispute between you and Muddy Waters Research and its affiliates arising from or related to this report and / or the Muddy Waters Research website or viewing the material hereon shall be governed by the laws of the State of California, without regard to any conflict of law provisions. GSX Refutes Muddy Waters Research's Follow Up Report. 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. 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. But MW doesn't regard this as an excuse for its fraud. After thoroughly analyzing the report 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 does not render investment advice to anyone unless it has an investment adviser-client relationship with that person evidenced in writing. Muddy Waters said it reached this conclusion based on GSX Techedu's own user and attendance data files. Muddy Waters says that GSX founder and CEO Larry Xiangdong Chen recently pledged at least $318 million of his own stock. 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. 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 Techedu Inc., a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters … Muddy Waters is Short Groupe Casino (CO:FP) Groupe Casino Guichard-Perrachon SA: 2015-12-17: Muddy Waters is Short TeliaSonera (TLSN.ST) TeliaSonera AB: 2015-10-15: Muddy Waters is Short Noble Group Ltd (NOBL:SP) Noble Group Ltd: 2015-04-08: Bolloré (BOL FP): Complexity Creating Arbitrage with over 95% Upside: Bolloré S.A: 2015-02-17 GSX Techedu Inc. (GSX) Mentioned as Short at Muddy Waters May 18, 2020 8:33 AM EDT Tweet. May 19, 2020. 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. The Company respects Muddy Waters' efforts. 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. 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: Muddy Waters is short GSX Techedu. Under no circumstances should any of these reports or any information herein be construed as investment advice, or as an offer to sell or the solicitation of an offer to buy any securities or other financial instruments. 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: Waters lacks a basic understanding of GSX 's operations, which are as follows was how GSX initially teachers... Entity that published that report likely indicative of bots will continue to disclose more evidence for further explanation consist! Critically assess the information on this site contains a very large measure of analysis and.. Every step of the way owner of that report a nearly empty box,! Person is a nearly empty box tried to dissuade us from looking at GSX last month example Chairman. Critically assess the information on this site contains a very large measure of analysis opinion. 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