Former Teacher Turned Tycoon Loses $14 Billion in Just Months

Larry Chen started his career as a middle-school teacher before joining New Oriental Education & Technology Group Inc. in 1999 and eventually becoming executive president. He left to start GSX in 2014.

Larry Chen, the former school teacher from a poor Chinese village who became one of the world's richest people, is closing in on losing his billionaire status as shares in his online-education business slump. GSX Techedu Inc. fell 4% in New York trading Wednesday after Goldman Sachs Group Inc. downgraded the stock and slashed its price target. The shares have plunged 88% since late January, wiping almost $14 billion from Chen's fortune and leaving him a net worth of about $1.9 billion, according to the Bloomberg Billionaires Index. The Chinese firm has been buffeted by a range of issues, including the country's crackdown on the online-education sector, a weaker-than-expected results outlook and the implosion of an investor, Bill Hwang's Archegos Capital Management. "Policy risk is the No. 1 concern right now," said Tommy Wong, an analyst at China Merchants Securities International Co. based in Hong Kong, who rates the stock a buy.