Reasoning or Memorization: Can LLMs Understand and Generate Chinese Xiehouyu Riddles?

In this paper, we push the boundary of LLM reasoning by testing them in a Chinese language game, xiehouyu, with novel xiehouyu created by linguists that had not existed before to avoid data contamination. We use multiple-choice questions (MCQ), free-form explanation generation, and new xiehouyu creation to evaluate LLMs' ability to understand and create xiehouyu. In MCQ, we use the delta of accuracy (Deltaacc) between existing but low-frequency xiehouyu and novel ones as an index for memorization. Deltaacc for native speakers is very low, suggesting similar processing mechanisms. However, we found that frontier Chinese models have on average a Deltaacc of 23.6%, while English-centric models tested have a mean Deltaacc of 5.1%, suggesting that frontier Chinese models are likely trained with much larger Chinese data, thus memorizing more low-frequency xiehouyu. For novel xiehouyu, Gemini 3.1 Pro demonstrated remarkable ability with acc 92.6, which is 24% higher than human accuracy. In xiehouyu creation, those created by LLMs receive much worse ratings than those by humans. These results suggest that claims about the reasoning abilities of LLMs may need careful re-examination considering the data contamination issue, and that LLMs' creativity in language-related tasks may still be behind human experts, at least in Chinese xiehouyu.