‘Netflix of China’ stock tanks amid SEC probe into billion-dollar fraud allegations

The US Securities and Exchange Commission (SEC) is investigating Baidu’s iQiyi (IQ), aka “the Netflix of China,” after an activist crew of short sellers alleged the video streaming platform cooks its books. “The SEC‘s Division of Enforcement is seeking the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020,” said IQ in its quarterly earnings release, published Thursday and shared by CNN. The Wolfpack Research report in question boldly claimed that IQ, a Nasdaq-listed company, was committing…

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