Qihoo Rises Most Since June as Auditor Backs Financial Statement
Qihoo 360 Technology Co. (QIHU), a Chinese developer of computer security software, surged the most in 10 months after a filing showed that auditor Deloitte Touche Tohmatsu consented to its financial statements for 2010 and 2011.
Qihoo’s American depositary receipts climbed 20 percent, the most since June 7, to $24.68 at 3:31 p.m. New York time. The ADRs earlier soared as much as 27 percent to $26.18.
Deloitte Touche Tohmatsu said the company’s “consolidated financial statements present fairly, in all material respects, the financial position” of Qihoo as of Dec. 31, 2010 and 2011.
The filing demonstrated that Qihoo’s “financial figures were checked and audited, which is a good refutation of allegations by some short sellers on its business and a positive to its stock,” said Qi Guo, research analyst on U.S.-listed Chinese Internet stocks at ThinkEquity Partners LLC in San Francisco.
Qihoo rejected in an April 3 statement allegations that were raised in a Forbes magazine article a day earlier that Qihoo’s “revenue model” had changed since its IPO. The company also refuted accusations by companies including short seller Citron Research, which disputed Qihoo’s sources of revenue in reports since November.
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