NEW YORK, NY--(Marketwire - Sep 24, 2012) - Chinese stocks slumped last Thursday after week economic data sent the Shanghai Composite Index to its lowest level in nearly four years. The Shanghai Index fell to its lowest level since February 2009 after the HSBC Flash China manufacturing purchasing managers' index signaled a 11^th month of contraction in September. Five Star Equities examines the outlook for Chinese Internet stocks and provides equity research on Qihoo 360 Technology Co. Ltd. (NYSE: [ QIHU ]) and Youku Tudou Inc. (NYSE: [ YOKU ]).

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China's gross domestic product has contracted for six consecutive quarters. The country's GDP in the second quarter expanded 7.6 percent, which was the smallest growth in three years. Tensions between China and Japan, the second and third largest economies in the world, over disputed islands could pose a major threat for their bilateral trade market, which has grown to over $340 billion in the last decade.

"There's concern the islands incident may escalate and exports may be impacted," Jianghai Securities Co. analyst, Xu Shengjun, said by phone Bloomberg reported. "The economic data don't look good. The stock market won't improve in the near term with these concerns."

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Qihoo 360 Technology is a leading Internet company in China. The Company is also the number one provider of Internet and mobile security products in China as measured by its user base, according to iResearch. The company entered the online search engine market on August 16.

Youku is China's leading Internet television company. Their internet television platform enables users to search, view and share high-quality video content quickly and easily across multiple devices. Apple announced that the next versions of Apple's OS X desktop operating system and iOS mobile operating system will integrate with services from Youku.

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