The US Securities and Exchange Commission has frozen the assets of Luo Hanjian, the chief executive of Chinese firm 4399 Co., after Luo purchased about US$700,000 in options betting that the stock price of New York-listed Qihoo 360 Technology (QIHU.NYSE) would rise ahead of an announcement it had received a US$9 billion buyout offer, The Wall Street Journal reported. Luo made more than US$1 million from the out-of-the-money call options and asked his brokerage firm to transfer more than half of the proceeds to a foreign bank account, the commission said. The Qihoo investigation comes as many US-listed Chinese firms receive buyout offers from parties seeking their relisting at home.
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