iQiYi Inc., a Chinese Netflix-style streaming service which backed by Internet giant Baidu
Inc., tumbled 14% after disclosing that the company is under investigation by the United States Securities and Exchange Commission.
The SEC requires the company to provide financial records since January 2018, and mention the reported by the bearer Wolfpack Research. IQiYi stated that it had hired consultants to investigate Wolfpack Research's allegations and cannot predict the duration and results of the SEC investigation.
In April this year, iQiYi was shorted by Wolfpack Research, which claimed that 8-13 billion yuan overstated iQiYi's 2019 revenue.