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Qihoo 360 shares soar in NYSE debut

0 CommentsPrint E-mail CNTV, April 1, 2011
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Overnight, shares of Qihoo 360 Technology, China's third biggest Internet company, soared in its debut on the New York Stock Exchange. As CCTV reporter Zou Yun finds out, it was an echo of the Chinese technology IPO euphoria of late 2010.

Qihoo's shares more than doubled to 34 US dollars by the time the closing bell was heard. For some time now, US investors have been attracted to Chinese internet companies, eager to cash in on the booming growth of Chinese web users and the country's economy. Qihoo 360 is China's leading provider of internet and mobile security products and maker of the second most-popular web browser, behind Microsoft's Internet Explorer.

Zhou Hongyi, Chairman of Qihoo 360 said "Many netizens like Qihoo 360, and choose to use our browser. We recommended some websites in our browsers and then there came advertising revenue, and we also have value-added services like web games."

However, there are skeptical analysts too - who believe Chinese internet companies are overvalued and investors are too eager. But Zhou Hongyi says that Qihoo 360's profit model is unique.

Zhou Hongyi said "We subvert the traditional model by providing netizens with free anti-virus software,and secure them with a safer platform to surf on the Internet. "

When asked about the challenges Qihoo is going to face in the next couple of years, Zhou says the company needs to be focused on its core internet and wireless security business, as well as its web product. It must also seek growth through value-added services and advertising.

 

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