Qihoo Concept Stocks Slump on Denial of Backdoor Listing Plans
Yicai Global
/SOURCE : Yicai
Qihoo Concept Stocks Slump on Denial of Backdoor Listing Plans

(Yicai Global) Aug. 23 -- Zhou Hongyi, chairman of the Internet security company Qihoo 360, denied plans to float the company in China through a backdoor listing. Related stocks slumped on the A-share market.

The Beijing-based company was listed on the New York Stock Exchange (NYSE) in 2011. In 2015, a group of investors led by Zhou Hongyi, founder of Qihoo 360, took it private on July 15 and it ceased public trading on the NYSE.

After its exit from the US market, rumors surfaced that Qihoo 360 was planning a backdoor listing in China, and share prices of many shell companies rallied strongly on the news.

After Zhou's denial appeared in the press, the price of all stocks mentioned in the rumors tumbled on Tuesday. For example, CITIC Guoan Wine Co., Ltd. [SH:600084] dipped 5.95 percentage points, Ningbo Bird Co., Ltd. [SH:600130] dropped over 6.9 percentage points, Jilin Sino-Microelectronics Co., Ltd. [SH:600360] fell 6.5 percentage points, and CITIC Guoan Information Industry Co., Ltd. [SZ:000839] was down over 5.44 percentage points.

Zhou stated yesterday to the press that the Chinese capital market was beyond his comprehension. "Stocks related to the Qihoo 360 concept have nothing to do with us," said the chairman, since they have not contacted any listed companies for a backdoor listing. "Please don't believe rumors on the Internet."

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