Mystery Block Trade Erases $3 Billion From GSX Founder’s Fortune
Larry Chen, left, and company CFO Nan Shen during their IPO at the New York Stock Exchange in 2019.
Photographer: Richard Drew/AP Photo
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Larry Chen, founder and chairman of GSX Techedu Inc., lost $3.1 billion overnight as American depositary receipts of his online education company tumbled amid a barrage of block trades in some giant Chinese and U.S. companies.
Shares in the Chinese firm plunged 42% on Friday after Morgan Stanley managed the trade, according to a person familiar with the matter. Chen’s net worth dropped to $4.2 billion, knocking him from the Bloomberg Billionaires Index ranking of the richest 500 people globally.