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Qihoo 360 Technology Co. Ltd. Message Board

  • stockgorilla stockgorilla Dec 17, 2013 10:03 AM Flag

    Reason for 5% drop on Monday ?

    Two articles published recently highlight a new investing risk in Chinese companies :

    InvestorPlace, Dec 16th: Be Warned About Soaring Baidu Stock (that's the headline).
    Bloomberg, Dec 15th: Baidu Forced to Add Warnings as Regulators Focus on China Stocks (headline).

    As I understand, the holding structure (in China) for half these companies, including QIHU, is such that, legally, foreign investors in Chinese shares/ADRs don't get direct ownership in the business, only the profits and losses.

    To me, this sounds like a very big deal. The SEC and others are digging deeper.

    What are your opinions about this risk ? TIA.

73.80-0.54(-0.73%)May 27 4:02 PMEDT