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Archegos implosion puts large hole in billionaire teacherâs fortune
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By Yoojung Lee
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Itâs been a turbulent few weeks for Larry Chen, a former school teacher from a poor Chinese village whoâs now one of the worldâs richest people.
His online tutoring firm, GSX Techedu, has been battered in the stock market, tumbling more than 80 per cent since late January. Last month, the investor with the largest exposure to the shares - Bill Hwangâs Archegos Capital Management - imploded when it was unable to answer margin calls.
His online tutoring firm, GSX Techedu Inc., has been battered in the stock market, tumbling more than 80% since late January. Last month, the investor with the largest exposure to the shares Bill Hwang’s Archegos Capital Management imploded when it was unable to answer margin calls.
Short sellers including Carson Block’s Muddy Waters and others have been circling since last year, and GSX’s latest financial results showed wider-than-expected losses. It faced a new barrage this month, with Grizzly Research issuing a report questioning the number and qualifications of teachers working for the company, and arguing that auditor Deloitte shouldn’t give an opinion on the firm’s annual report.
It’s been a turbulent few weeks for Larry Chen, a former school teacher from a poor Chinese village who’s now one of the world’s richest people. His online tutoring firm, GSX Techedu Inc., has been battered in the stock market, tumbling more than 80% since late January. Last month, the investor with the largest exposure to the shares Bill Hwang’s Archegos Capital Management imploded when it was unable to answer margin calls. Short sellers including Carson Block’s Muddy Waters and others have been circling since last year, and GSX’s latest financial results showed wider-than-expected losses. It faced a new barrage this month, with Grizzly Research issuing a report questioning the number and qualifications of teachers working for the company, and arguing that auditor Deloitte shouldn’t give an opinion on the firm’s annual report.
U.S. Blacklists Xiaomi in Widening Assault on China Tech
Bloomberg 1/15/2021 Bloomberg News
(Bloomberg) Xiaomi Corp. plunged a record 10% after the Trump administration blacklisted China’s No. 2 smartphone maker and 10 other companies, broadening efforts to undercut the expansion of the country’s technology sector.
The U.S. has targeted scores of Chinese companies for the stated purpose of protecting national security, but going after Xiaomi was unexpected. The Beijing-based company has been viewed as China’s answer to Apple Inc., producing sleek smartphones that draw loyal fans with each new release. The company, which vies with Huawei Technologies Co. for the title of China’s No. 1 mobile device brand, also makes electric scooters, earphones and smart rice cookers.