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What: Shares of Chinese Internet security software maker Qihoo 360
So what: The Forbes article said that Qihoo may have questionable accounting practices that have led to some unanswered questions surrounding the change of its business model over the past year. Forbes contributor Richard Pearson says there is "maybe" a fraud case at the company, and that auditor Deloitte may have trouble signing off with a stamp of approval.
Now what: Investors in Chinese companies justifiably have itchy trigger fingers when it comes to selling, considering the numerous accounting frauds and controversies that have plagued the sector in recent memory. Just putting the word "fraud" in a sentence with "[insert name of Chinese company here]" is enough to send investors packing for the door. Qihoo is trying to get in front of this one and has issued a formal press release "strongly [rejecting] the allegations raised in [the] Forbes article today." If management wanted to really put its money where its mouth is, it could even personally buy shares like Focus Media
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