SEC Investigation Sinks iQiyi and Baidu Shares

Baidu (NASDAQ: BIDU) and its offshoot iQiyi (NASDAQ: IQ) reported mixed financial results after the market close on Thursday, but the bigger story was the confirmation of a regulatory probe into the Chinese streaming giant.

iQiyi revealed that the U.S. Securities and Exchange Commission is investigating the company in the wake of a report issued by noted short-seller Wolfpack Research back in April. iQiyi also admitted for the first time the existence of an internal investigation into allegations contained in the report. The company says it has hired "professional advisors" who are conducting "an internal review into certain of the key allegations in the Wolfpack Report." 

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Source Fool.com