US SEC freezes Chinese trader's assets following fishy Qihoo trades

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.