Shares of Alibaba Group Holding Ltd (NYSE:BABA) and other Chinese names including JD.com Inc (NASDAQ:JD) and Pinduoduo Inc (NASDAQ:PDD) are moving lower Tuesday after Baidu Inc (NASDAQ:BIDU) shares fell on mixed second-quarter earnings results.
- BIDU Revenue: $4.43 billion missed estimate of $4.45 billion
- BIDU EPS: $2.36 beat estimate of $1.63
“Despite a challenging macro environment caused by Covid-19, Baidu Core generated RMB23.2 billion in revenues in the second quarter, while Baidu AI Cloud revenues maintained rapid growth momentum of 31% year over year and 10% quarter over quarter,” said Robin Li, co-founder and CEO of Baidu.
What Else Is Happening: Further audit inspection developments may also be adding to the move lower in Chinese stocks.
According to a Reuters report, U.S. regulators have selected Alibaba and other U.S.-listed Chinese companies for audit inspections, which are expected to start next month.
The news comes after China’s Securities Regulatory Commission and the U.S. Public Company Accounting Oversight Board (PCAOB) reached an agreement on Friday to cooperate on audit inspections of U.S.-listed Chinese companies.
The report indicates that three sources familiar with the matter said Alibaba has been notified that it will be among the first Chinese companies to have its audits inspected by the PCAOB.
See Also: China Ramps Up Regulatory Scrutiny Of Overseas Borrowing
BABA, JD, PDD Price Action: At press time, Alibaba was down 3.44% at $93.28, JD.com was down 2.33% at $60.87 and Pinduoduo was down 2.41% at $64.45.
Photo: courtesy of Alibaba.
