Shares in Baidu, which runs China’s largest internet search engine, rose more than 8 percent on Tuesday, helping the company claw back some losses from the first half of the year in a move that may signal a revival for Chinese tech stocks including e-commerce giant Alibaba.
Baidu shares rose 8.5% to close at $95.40, while Alibaba rose 3% to close at $75.70. The CraneShares CSI China Internet ETF rose 2.6% to close at $28.04.
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Shares in Alibaba, operator of China’s largest internet search engine, rose more than 8 percent on Tuesday, recouping losses from the first half of the year in a move that may signal a revival for Chinese tech stocks, including the e-commerce giant.
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Baidu shares rose 8.5% to close at $95.40, while Alibaba rose 3% to close at $75.70. The CraneShares CSI China Internet ETF rose 2.6% to close at $28.04.
It’s unclear what’s driving the recent surge in shares. Baidu’s shares had fallen more than 25% as of Monday’s close from a 2024 high of $118 in early January. Baidu controls much of China’s search business and is also active in AI, running self-driving taxis in Beijing and Wuhan and a chatbot called Ernie.
Alibaba also disappoints in 2024, with its shares down 2.4% for the year, as geopolitical tensions and China’s economic slowdown weigh on the stock.
Baidu’s last earnings report beat analyst expectations, leading to a rise in its stock price in May. At the time, CEO Robin Li credited the company’s AI technology with driving “AI cloud revenue growth during the quarter.” Baidu’s next earnings report is on August 27.
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Contact Anita Hamilton at anita.hamilton@barrons.com.
