Thread by @BenKTallmadge, Ponzi China Stock TAL Education Dives As It Becomes Latest To Report [...]

Ponzi China Stock TAL Education Dives As It Becomes Latest To Report Sales Fraud After Luckin Coffee Last Week Admitted Fabricating Sales.

Delist all Chinese firms from US indexes!

Boycott China! https://www.investors.com/news/china-stock-tal-education-dives-luckin-coffee-sales-fraud/">https://www.investors.com/news/chin...

China Stock TAL Education Dives As It Becomes Latest To Report Sales Fraud | Investor's Business...

TAL Education dived late after the China stock said it's probing sales fraud. Last week Luckin Coffee said it's eying $300 million in "fabricated sales."

https://www.investors.com/news/china-stock-tal-education-dives-luckin-coffee-sales-fraud/

Back in 2018, China’s TAL Education stock dived after short seller Muddy Waters claimed TAL inflated pretax profits by 28.4%, or $153.2M between 2016 & 2018 & overstated operating profit by 21% & net income by 43%.

Another on bites the dust:

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Nasdaq listed Ponzi Chinese video streaming giant iQiyi, owned by Chinese search virus Baidu, accused of fraud and inflating financial numbers-

Wolfpack Research alleged that iQiyi was committing fraud well before its IPO https://www.cnbc.com/2020/04/08/iqiyi-accused-of-fraud-by-wolfpack-muddy-waters.html">https://www.cnbc.com/2020/04/0...

Chinese video streaming giant iQiyi accused of fraud, company says report contains 'misleading...

Wolfpack Research alleged in a report that iQiyi, which is majority owned by Chinese search giant Baidu, overstated revenue for 2019 through a number of means, including the way it booked revenue...

https://www.cnbc.com/2020/04/08/iqiyi-accused-of-fraud-by-wolfpack-muddy-waters.html

Wolfpack Research is back by Muddy Waters Capital, a high profile activist firm known for finding alleged fraud within companies & taking short positions against them.

Both firms said they took short positions against China’s iQiyi.

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Last week, Nasdaq listed Ponzi Chinese Luckin Coffee plunged 75% in the SEC accounting probe -
Luckin COO Jian Liu fabricated transactions amounted to about $320M from the 2nd quarter to the 4th quarter last year.

Thank u, @muddywatersre ! https://www.cnn.com/2020/04/02/investing/luckin-coffee-accounting-probe-stock/index.html">https://www.cnn.com/2020/04/0...

China's Luckin Coffee plunges 75% on accounting probe

Luckin Coffee has become a phenomenon in China -- and with Wall Street investors -- due to stunning growth. But it turns out some of its sales may have been fake.

https://www.cnn.com/2020/04/02/investing/luckin-coffee-accounting-probe-stock/index.html

Muddy Waters Research is best known for spotting fraud at Shino-Forest Corp,Canadian-listed Ponzi Chinese company whose stock fell 74% before filing for bankruptcy protection in 2012.

In 2014, Canadian authorities criminally charged the firm & its execs.

https://en.wikipedia.org/wiki/Muddy_Waters_Research">https://en.wikipedia.org/wiki/Mudd...

Muddy Waters Research founder Carson Block is known for documenting & alleging fraudulent accounting practices in publicly-traded Chinese firms.

He appeared in the documentary The China Hustle.

https://en.wikipedia.org/wiki/Carson_Block">https://en.wikipedia.org/wiki/Cars...

“Thé Chinese have an old proverb 混水摸魚 ( Muddy Waters make it easier to catch fish ), in other words, opacity creates opportunities to make money. This way of thinking has been part of Chinese culture for centuries & institutionalized in modern PRC.”

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤪" title="Zany face" aria-label="Emoji: Zany face"> https://www.linkedin.com/company/muddy-waters-research">https://www.linkedin.com/company/m...

Muddy Waters Research | LinkedIn

Learn about working at Muddy Waters Research. Join LinkedIn today for free. See who you know at Muddy Waters Research, leverage your professional network, and get hired.

https://www.linkedin.com/company/muddy-waters-research

May 2019.
Dan David Launches Wolfpack Research (Backed by Muddy Waters Capital) to Expose Fraud & Corporate Wrongdoing -

Mr. David was most recently the Republican nominee for Congress in PA’s 4th district. https://www.prnewswire.com/news-releases/dan-david-launches-wolfpack-research-to-expose-fraud-and-corporate-wrongdoing-300844256.html">https://www.prnewswire.com/news-rele...

Dan David Launches Wolfpack Research to Expose Fraud and Corporate Wrongdoing

/PRNewswire/ -- Dan David, a veteran activist short seller who helped lead to the exposure over $15 billion of fraud on U.S. capital markets, is pleased to...

https://www.prnewswire.com/news-releases/dan-david-launches-wolfpack-research-to-expose-fraud-and-corporate-wrongdoing-300844256.html

Carson Block’s Muddy Waters Takes Short Position In Online Health Marketplace eHealth Inc.

Shares of eHealth fell over 17% at Weds after Block’s premarket disclosure.

Worth to note eHealth’s Chief Financial Officer Derek N. Yung is from HongKong. https://www.cnbc.com/amp/2020/04/08/carson-blocks-muddy-waters-takes-short-position-in-ehealth.html">https://www.cnbc.com/amp/2020/...

Carson Block's Muddy Waters takes short position in online health marketplace eHealth

Carson Block's firm has taken a short position in eHealth, a digital health insurance marketplace company.

https://www.cnbc.com/amp/2020/04/08/carson-blocks-muddy-waters-takes-short-position-in-ehealth.html

Have u used eHealth?
You’ve probably been hacked!

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Sept 6, 2019.
eHealth China, a wholly-owned indirect subsidiary of eHealth Inc. enter into an Office list contract & a Property Management Service Contract With Xiamen Software Industry... https://www.marketscreener.com/EHEALTH-INC-34599/news/EHEALTH-INC-Entry-into-a-Material-Definitive-Agreement-Financial-Statements-and-Exhibits-form-29170219/">https://www.marketscreener.com/EHEALTH-I...

EHEALTH, INC. : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form...

Item 1.01. Entry into a Material Definitive Agreement. On September 2, 2019, eHealth China Technology Co., Ltd. , a wholly-owned indirect subsidiary of eHealth, Inc. entered into... | September 6,...

https://www.marketscreener.com/EHEALTH-INC-34599/news/EHEALTH-INC-Entry-into-a-Material-Definitive-Agreement-Financial-Statements-and-Exhibits-form-29170219/

PONZI Chinese companies still hope for New York IPOs - despite recent fraud, scandals & China virus - https://www.cnbc.com/2020/04/15/chinese-companies-hope-for-new-york-ipos-despite-fraud-coronavirus.html">https://www.cnbc.com/2020/04/1...

Chinese companies still hope for New York IPOs — despite recent fraud, scandals and coronavirus

Many Chinese companies are still planning to list in the U.S., despite increased scrutiny on the issuers in the wake of disclosures of fraud at high-profile stocks such as Luckin Coffee.

https://www.cnbc.com/2020/04/15/chinese-companies-hope-for-new-york-ipos-despite-fraud-coronavirus.html

Ponzi Chinese Luckin Coffee investors rue implosion on US$400M bond bet after accounting scandal -

Legal experts see little prospect of Luckin ADS resuming trading amid ongoing investigation.

H/t @g_easton819 https://www.scmp.com/business/companies/article/3081304/luckin-coffee-investors-rue-implosion-us400-million-bond-bet">https://www.scmp.com/business/...

Luckin bondholders stand to lose US$400 million amid accounting scandal

Luckin Coffee bondholders are ruing their fate after an accounting scandal sent the notes into distressed levels, barely three months after the debt sale in January.

https://www.scmp.com/business/companies/article/3081304/luckin-coffee-investors-rue-implosion-us400-million-bond-bet

Caveat Emptor:

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https://twitter.com/g_easton819/status/1253540087226195975?s=21">https://twitter.com/g_easton8... https://twitter.com/g_easton819/status/1253540087226195975">https://twitter.com/g_easton8...

https://twitter.com/g_easton819/status/1253540087226195975?s=21

Luckin Collapse Adds to Credit Suisse’s Asian Loan Losses -

Swiss Bank & Morgan Stanley each has $100M on the hook.

Luckin shares last traded at $4.39, down 91% from its Jan high.

How many more US-listed Ponzi Chinese companies r going down? https://www.bloomberg.com/news/articles/2020-04-23/luckin-collapse-adds-to-credit-suisse-s-asian-loan-provisions">https://www.bloomberg.com/news/arti...

Luckin Collapse Adds to Credit Suisse’s Asian Loan Losses

Credit Suisse Group AG was stung by the collapse of Luckin Coffee Inc. in China following an accounting scandal, which led to a five-fold increase in Asian loan-loss provisions.

https://www.bloomberg.com/news/articles/2020-04-23/luckin-collapse-adds-to-credit-suisse-s-asian-loan-provisions

PONZI China

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇳" title="Flag of China" aria-label="Emoji: Flag of China">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💩" title="Pile of poo" aria-label="Emoji: Pile of poo">Cracks Down On Fraud And Tries to Cleans up Image with Nasdaq-Listed Luckin Probe -

All Chinese firms need to be delisted from US indexes.

Not only because they can’t be trusted, US investor $ shouldn’t fund the rise of a Nazis regime. https://www.cnbc.com/2020/04/28/china-cracks-down-on-fraud-and-tries-to-cleans-up-image-with-luckin-probe.html">https://www.cnbc.com/2020/04/2...

China cracks down on fraud and tries to clean up image with Luckin probe

In a period fraught with tensions with the U.S., China is trying to show it's being serious about tackling fraud.

https://www.cnbc.com/2020/04/28/china-cracks-down-on-fraud-and-tries-to-cleans-up-image-with-luckin-probe.html

Another one bites the dust.

Soon there’ll be no PONZI Chinese firms listed on US indexes.

SHAME ON china!!

Berger Montague Investigates Securities Fraud Class Action Clsim Against Firm GSX Techedu Inc. Lead Plantiff Deadline is June 16, 2020- https://www.marketwatch.com/press-release/gsx-stock-berger-montague-investigates-securities-fraud-class-action-claims-against-gsx-techedu-inc-nyse-gsx-lead-plaintiff-deadline-is-june-16-2020-2020-04-29">https://www.marketwatch.com/press-rel...

GSX Stock: Berger Montague Investigates Securities Fraud Class Action Claims Against GSX Techedu...

PHILADELPHIA, April 29, 2020 /PRNewswire via COMTEX/ -- PHILADELPHIA, April 29, 2020 /PRNewswire/ -- Berger Montague is investigating securities fraud claims...

https://www.marketwatch.com/press-release/gsx-stock-berger-montague-investigates-securities-fraud-class-action-claims-against-gsx-techedu-inc-nyse-gsx-lead-plaintiff-deadline-is-june-16-2020-2020-04-29

Chinese GSX & it’s senior management failed to disclose to investors that the company had overstated its profitability, overstated revenue by 70%, fake student enrollment figures, teacher qualification & teacher selection process.

US-listed Chinazi stock GSX Techedu is a ‘near-total fraud’ and worthless, a massive lost-making ‘ business:

At least 70% GSX users are bots and that the real number is likely 80% or more.

@marcorubio @HawleyMO @SenTomCotton

Delist all Chinese firms! https://www.foxbusiness.com/markets/china-stock-gsx-techedu-massive-loss-making-business-muddy-waters.amp">https://www.foxbusiness.com/markets/c...

China stock GSX Techedu is a 'massive loss-making business': Muddy Waters Research

GSX Techedu is a "near-total fraud" and at least 70 percent of users are bots, Muddy Waters Research said.

https://www.foxbusiness.com/markets/china-stock-gsx-techedu-massive-loss-making-business-muddy-waters.amp

Chinazi companies listed in thé US aren’t required to abide by the same accounting standards as US firms. There’re 156 Ponzi Chinazi firms listed on US Exchange worth $1.2 TRILLION as of Feb 25, 2019.

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$1.2 TRILLION US investor money has been stolen by China!

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May 18, 2020
Chinazi GSX Shares Tank 15% After Muddy Waters Claims 80% Of Students Are Bots -

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Thé Beijing-based GSX became public traded in June 2019, raising $208M from Wall St. http://www.capitalwatch.com/article-5612-1.html">https://www.capitalwatch.com/article-5...

GSX Shares Tank 15% After Muddy Waters Claims 80% of Students Are Bots

Just another short-seller report for the Chinese afterschool tutoring company.

http://www.capitalwatch.com/article-5612-1.html

@marcorubio @SenTomCotton @MarshaBlackburn

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https://twitter.com/muddywatersre/status/1262360285496487939?s=20">https://twitter.com/muddywate... https://twitter.com/muddywatersre/status/1262360285496487939">https://twitter.com/muddywate...

https://twitter.com/muddywatersre/status/1262360285496487939?s=20

There’s nothing real coming out of China.

Fake food, fake baby formula, fake pet treat, fake dry wall, fake medical supplies, fake classes, fake student registrations,fake company data, fake stocks!

https://twitter.com/yahoofinance/status/1262464071888240643?s=21">https://twitter.com/yahoofina... https://twitter.com/YahooFinance/status/1262464071888240643">https://twitter.com/YahooFina...

https://twitter.com/yahoofinance/status/1262464071888240643?s=21

China urges its PONZI companies to list in London in renewed global push -

@BorisJohnson, don’t sell ur country out. https://uk.reuters.com/article/uk-britain-listings-china-idUKKBN22U1MY">https://uk.reuters.com/article/u...

China urges local companies to list in London in renewed global push - sources

China is urging domestic companies to look at listing in London, several sources told Reuters, as the country aims to revive deals under a Stock Connect scheme and strengthen overseas ties in the...

https://uk.reuters.com/article/uk-britain-listings-china-idUKKBN22U1MY

Nasdaq to Tighten Listing Rules Restricting Chinazi IPOs -

The move will make it more difficult for Chinese firms to debut on its stock exchange.

Nasdaq will also inspect auditing of US firms that audit the Chinazi IPO accounts. https://www.reuters.com/article/us-nasdaq-china-listings-exclusive/exclusive-nasdaq-to-tighten-listing-rules-restricting-chinese-ipos-sources-idUSKBN22V01Q">https://www.reuters.com/article/u...

Exclusive: Nasdaq to tighten listing rules, restricting Chinese IPOs - sources

Nasdaq Inc is set to unveil new restrictions on initial public offerings (IPOs), a move that will make it more difficult for some Chinese companies to debut on its stock exchange, people familiar...

https://www.reuters.com/article/us-nasdaq-china-listings-exclusive/exclusive-nasdaq-to-tighten-listing-rules-restricting-chinese-ipos-sources-idUSKBN22V01Q

Nasdaq also puts a minimum value on the size of IPOs ($25M or 1/4 of their post-listing market cap)

The change woulda prevented several Chinazi firms currently listed on the Nasdaq from going public.

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