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SEC Probes Chinese Education Firm Amid Tighter U.S. Scrutiny

  • GSX Techedu shares sink 12% after disclosing SEC investigation
  • Regulators ramp up scrutiny of China firms as tensions rise

Beijing-based education company GSX Techedu Inc. said it is being investigated by the Securities and Exchange Commission, the latest case as U.S.-listed Chinese companies face greater scrutiny on accounting issues amid rising tensions between the two countries.

The SEC’s Division of Enforcement contacted the company asking it to produce financial and operating records dating from Jan. 1, 2017, GSX said in its second-quarter earnings statement Wednesday. GSX said it is cooperating with the SEC.