Shares of GSX Techedu are falling after the company reported unaudited Q2 results and that the Securities and Exchange Commission's Division of Enforcement contacted the company, requesting it to produce certain financial and operating records dating from January 1, 2017.

GSX said in its earnings release, "Following a number of short-seller reports about the Company from approximately February 2020 to approximately July 2020, the SEC's Division of Enforcement contacted the Company, requesting it to produce certain financial and operating records dating from January 1, 2017. The Company is cooperating with the SEC. We cannot predict the timing, outcome, or consequence of the SEC investigation. Prior to the SEC contact, the Audit Committee of the Board of Directors of the Company engaged third party professional advisers to conduct an internal independent review into these reports' key allegations. As work remains ongoing, we cannot predict the timing, outcome, or consequence of that review."

Shares of GSX Techedu, an after-school tutoring service provider in China, are down 15%, or $14.06, to $80.63 in pre-market trading.