Hong Kong (CNN Business)Investors are getting nervous about iQiyi (, the online streaming provider often referred to as the "Netflix of China," as regulators examine allegations of inflated earnings. )
Shares of the Nasdaq-listed company fell 11.6% in pre-market trading Friday after iQiyi revealed that the US Securities and Exchange Commission had opened an investigation into its practices following a controversial report alleging massive fraud at the firm. The company said it had already begun its own internal review of the claims, and expected a "positive" outcome.
Wolfpack referred back to the Luckin saga in its report in April, concluding its research by stating: "If what we've said thus far doesn't concern you, all we can say is 'good Luckin.'"
"We cannot predict the timing, outcome or consequences of the SEC investigation," it said in a statement.
On a call with analysts, chief financial officer Xiaodong Wang added that the company had started an "internal, independent" review into Wolfpack's allegations shortly after the report came out.
He moved to reassure investors Thursday, saying that the company had built up strong "corporate governance" over the last 10 years.
"We don't know exactly the result and the status right now," he said. "What I can tell you is the voluntary disclosure of this investigation itself actually shows the confidence of the management on the potential results of this internal review."