Latest Regulations Look to Create Favorable Competitive Environment Youku and Qihoo

  Battered down in 2011, several Chinese internet stocks kicked off the New Year on the upswing as encouraging economic data from China curbed growth fears -- at least for one day. Earlier this week, Chinese Premier Wen Jaibao said business conditions may be "relatively difficult" in the first quarter and monetary policy will be fine-tuned as needed. The Paragon Report examines investing opportunities in China's Internet Sector and provides equity research on Youku, Inc. (NYSE: YOKU) and Qihoo 360 Technology Co. Ltd. (NYSE: QIHU). Access to the full company reports can be found at:

www.paragonreport.com/YOKU www.paragonreport.com/QIHU

As reported earlier this month in The Wall Street Journal, China's Ministry of Industry and Information Technology (MIIT) has released new regulations covering competitive practices in the country's Internet industry. MIIT issued the rules to curtail poor business practices in one of China's less regulated sectors, which is currently dominated by non-state-owned companies that would accuse competitors of unfair practices in order to gain an upper hand in the industry, The Wall Street Journal reports.

The rules, which take effect March 15, will help "create a favorable environment for information services," Li Guobin, an inspector in the MIIT's politics and law section, said in a statement on the ministry website.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on China's Internet Sector register with at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

While most Chinese technology stocks skyrocketed on the first day of trading in 2012, shares of Qihoo 360 Technology struggled. The Wall Street Journal report specifically cited the public feuding between Chinese Web companies, Tencent and Qihoo 360, over alleged unfair practices in late-2010 as one such example of poor business practices, as considered by MIIT.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer

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