Morning Commentary: Qihoo trades actively, unchanged on hedge; NQ Mobile trades at 54

By Rebecca Melvin

New York, July 8 – Qihoo 360 Technology Co. Ltd.’s 2.5% convertibles were trading actively early Tuesday but were unchanged, or in line with the underlying shares of the China web search engine, which were down about 5%, a New York-based trader said.

Vipshop Holdings Ltd.’s convertibles were not seen in trade although shares of the fellow Chinese internet company were also lower.

Qihoo’s convertibles were called 113 bid, 113.5 offered versus an underlying share price of $88.00.

“They are trading back and forth, unchanged,” the trader said of the Qihoo convertibles.

NQ Mobile Inc.’s convertibles were also active and trading around the 54 mark on the back of shares that continue to hemorrhage following news last week that the scope of its audit has been expanded and the head of its audit panel resigned.

NQ shares were down another 18 cents, or 4%, in the early going Tuesday to $4.30. The stock has dropped 35% in the past week from a $6.37 close last Tuesday.

Otherwise the U.S. convertibles market was relatively quiet.

“There are dribs and drabs trading, but it’s pretty quiet,” a trader said.

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