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Anonymous ID: c67f6e Sept. 2, 2020, 6:26 a.m. No.10502511   🗄️.is đź”—kun

SEC Probes China’s GSX Techedu After Short Sellers’ Pleas

 

GSX Techedu Inc., a Chinese language after-school tutoring firm, stated it’s being investigated by the U.S. Securities and Alternate Fee after short sellers accused the Beijing-based agency of inflating its gross sales. The New York-listed firm disclosed the probe with its second-quarter outcomes, which had been launched early Wednesday. GSX stated it was contacted by the SEC’s enforcement division and requested to provide monetary and working data relationship again to the start of 2017. The corporate added that it’s cooperating with the investigation. Its shares fell 15% in pre-market buying and selling.

 

The accounting practices of U.S.-listed Chinese language corporations have been under increased scrutiny in latest months. In April, Luckin Espresso Inc., a fast-growing Chinese language espresso chain that raised greater than $1 billion from the general public markets, revealed that much of its sales last year were fabricated. Its shares plunged in worth and have since been delisted from the Nasdaq Inventory Market .

 

GSX’s disclosure follows an analogous one from iQiyi Inc., a video-streaming firm that may be a unit of Chinese language search-engine big Baidu Inc. iQiyi stated final month that the U.S. regulator had requested for its monetary data and different paperwork, and that the corporate has hired professional advisers to conduct an inner evaluation. That investigation got here after a short-selling agency launched a report questioning iQiyi’s person numbers, gross sales, bills and a 2018 acquisition.

 

GSX was based in 2014 and offers tutoring lessons for elementary- to high-school college students throughout China. The corporate was listed on the New York Inventory Alternate in June 2019 after elevating $208 million in its IPO. Many of the classes it conducts are on-line and broadcast dwell to what the corporate says are giant teams of scholars.

https://www.wsj.com/articles/sec-probes-chinas-gsx-techedu-after-short-sellers-pleas-11599046396

Anonymous ID: c67f6e Sept. 2, 2020, 6:48 a.m. No.10502642   🗄️.is đź”—kun

Tesla’s Largest Outside Shareholder Cuts Stake

 

Baillie Gifford, Tesla’s largest outside shareholder, has reduced its position in the electric auto maker after the company’s rapid share appreciation made it an outsized influence on the firm’s holdings.

 

A filing with the Securities and Exchange Commission on Wednesday showed that the U.K.-based fund group now owns less than 5% of Tesla, down from 6.32%, according to data from FactSet.

 

In a statement, Baillie Gifford reiterated that it remains a long-term believer in Elon Musk’s company, and that the reduction in ownership was simply due to portfolio restrictions. “The substantial increase in Tesla’s share price means that we needed to reduce our holding in order to reflect concentration guidelines which restrict the weight of a single stock in clients’ portfolios,” Baillie Gifford’s James Anderson said in a statement.

 

“However, we intend to remain significant shareholders for many years ahead. We remain very optimistic about the future of the company. Tesla no longer faces any difficulty in raising capital at scale from outside sources but should there be serious setbacks in the share price we would welcome the opportunity to once again increase our shareholding.”

 

Tesla shares have surged more than 465% this year through Tuesday’s close, amid broad investor enthusiasm for electric vehicles. Part of Tesla’s share appreciation is also due to the company reporting its fourth straight quarter of profits in its July 22 report, which qualifies it for inclusion in the S&P 500. Tesla also posted better-than-expected second-quarter vehicle deliveries.

 

The company’s 5-for-1 stock split also went into effect on Monday, leading to a more than 12% jump in shares even though stock splits are purely cosmetic. Amid Tesla’s record run, the company said Tuesday it plans to raise up to $5 billion through a new stock offering.

https://www.cnbc.com/2020/09/02/teslas-largest-outside-shareholder-reduces-holding-citing-portfolio-restrictions.html