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Startups

Chinese e-tutor GSX probed by US after inflated sales complaints

Company denies accusations by short sellers after posting strong quarter

Online education provider GSX Techedu, recently trading at 12 times its IPO price last June, tumbled Wednesday following the disclosure. (Photo by Alex Fang)

NEW YORK -- Chinese e-learning platform GSX Techedu said Wednesday that it is being investigated by American regulators after multiple short sellers accused it of inflating sales.

The U.S. Securities and Exchange Commission's enforcement division contacted New York-listed GSX to request certain financial and operating records dating from Jan. 1, 2017, the Beijing-based company said in its earnings release, which reported a rosy second quarter.

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