In July, Muddy Waters turned its attention to China's booming education industry. It alleged that New Oriental Education and Technology Group, the country's largest private sector training company, was using accounting tricks to inflate its profits. Muddy Waters concluded: " It is probable EDU [the New Oriental ticker symbol] will restate earnings, and probable that Deloitte [its auditor] will resign."

Almost six months on, US-listed New Oriental has not restated its earnings, Deloitte has not resigned -- and the company's shares are now about a third higher than they were when Mr Block published his attack.

Business at its schools is humming. On a recent evening, hundreds of young students filed into a Beijing-based training centre for after-school classes, receiving extra tuition in English, maths, even Marxist theory -- anything to give them an edge in the hyper-competitive Chinese education system.

http://edition.cnn.com/2012/12/14/business/china-muddy-waters/index.html?hpt=hp_t3