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5 November 2017 By Robyn Mak Follow @mak_robyn

After a bold take-private deal last year, software maker Qihoo’s $8 bln backdoor listing has hit a regulatory snag. Meanwhile, shares of U.S.-listed Chinese outfits are outperforming those on the mainland. Tech firms considering an escape from New York might rethink their plans.

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The Shanghai Stock Exchange on Nov. 4 sent a letter of enquiry to elevator-maker SJEC, requesting more information about the company's planned reverse-merger with anti-virus software maker Qihoo 360. The regulator, which has yet to approve the deal, has questioned Qihoo's reported market share, financial statements and forecasts, and ownership structure.

SJEC on Nov. 3 said it would acquire Qihoo for 50.4 billion yuan ($7.6 billion) which would allow the formerly New York-listed Qihoo to obtain a backdoor listing on China's A-share market.

In July 2016, Qihoo de-listed from the New York Stock Exchange after a management-led buyout deal valued at $9.3 billion.

Since the start of 2015, at least two dozen U.S-listed Chinese companies have announced “take private” deals. Those that are still under consideration include social network Renren and e-commerce group Jumei International.

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