(Bloomberg) — Carson Block is having an unusually tough time betting against Chinese stocks.
The famed short seller’s recent calls to unload shares of GSX Techedu Inc., TAL Education Group and Joyy Inc. have largely backfired after the stocks rallied following brief dips when his reports were first posted.
“GSX, after we reported it, tripled,” Block said in an interview with Bloomberg Television. “There is clearly something wrong.”
Block, founder of Muddy Waters Research, isn’t questioning his methods. He blames options traders, small floats and investors taking advantage of low volumes to push the Chinese stocks back up after his calls.
The result has been a grim year of shorting China equities for Block, who earned his reputation following successful bets against companies like Noble Group Ltd., the commodities firm in Singapore, and Sino-Forest Corp., a Canada-based timber company that operated in China.
GSX, the online education firm