The queue of applicants for overseas listing in 2000 is growing longer and longer. It is part of our long-term strategy to list on the stock market, but we prefer not to do so right now. This change meant that its first-mover status among news portals may be compromised.
Nobody seems to know the answer except the Chinese government.
In the opinion of TransAsia Lawyers, our PRC counsel, the ownership structure of Sohu and our wholly-owned subsidiary, Beijing Sohu, both currently and after giving effect to this offering, and the current and proposed businesses and operations of Sohu and Beijing Sohu as described in this prospectus, do not violate or breach any of the existing laws, rules and regulations of the PRC, and no consent, approval or license other than those already obtained is required under any of the existing laws, rules and regulations of the PRC for such ownership structure, businesses and operations or this offering. Now it is clear why the CSRC wants to see the legal opinion from Sohu's PRC Counsel. Reportedly, Sina was persuaded by the MII to delay its listing on the Nasdaq until more detailed regulations are released by the government. But it is risky, too. Punishment can be as severe as restricting its revenue distribution in the form of foreign currency remittance, to suspending its business license on MII orders and even to closing the firm.