NEW YORK (TheStreet) -- Qihoo 360 Technology  (QIHU) stock is advancing by 3.9% to $70.60 in mid-afternoon trading on Friday, after the company announced that its work toward satisfying the conditions for its $9.3 billion going-private bid is "progressing as expected."

Shares fell 3.8% yesterday following resistance from China's State Administration of Foreign Exchange, whose approval is needed to convert large sums of yuan into U.S. dollars.

The foreign-exchange supervisor told the buyout consortium that it is unable to move the acquisition funds offshore in a single batch, sources told Bloomberg. The investor group said it was still negotiating with the foreign-exchange supervisor. 

China's government has been attempting to control fund outflows amid $42.6 billion in privatization offers for U.S.-listed Chinese companies since the beginning of last year. 

"China is at an inflection point where it has to balance its objectives of growing via outbound M&A as well as capital outflows," Justin Tang, director of global special situations at Religare Capital Markets, told Bloomberg. "A loose approach to FX control could cause a stampede to do outbound acquisitions and deplete foreign reserves, which will result in undesirable consequences."

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Qihoo's strengths such as its robust revenue growth, notable return on equity and solid stock price performance are countered by the fact that the company has favored debt over equity in the management of its balance sheet.

You can view the full analysis from the report here: QIHU

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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