Why Baidu Stock Fell 23.3% in March
Shares of Baidu (NASDAQ: BIDU) fell 23.3% in March, according to data provided by S&P Global Market Intelligence. The Chinese search giant fell amid multiple headwinds during the month, including pressure on technology growth stocks more broadly and new regulations out of the SEC regarding U.S.-listed Chinese stocks.
A majority of Baidu's March fall came toward the end of the month. That's when the SEC officially adopted the Holding Foreign Companies Accountable Act passed under the Trump administration. That act stipulates that Chinese companies listed on U.S. stock exchanges are required to be audited by U.S. auditors, as well as provide proof that they are not owned or controlled by the Chinese government. Companies will also have to identify each board member that is currently an official in the Chinese Communist Party. Baidu is currently dual-listed in Hong Kong and on the Nasdaq Stock Market, so U.S. investors may have feared Baidu's shares will be delisted. Therefore, it was no surprise to see shares fall on the news.
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Source Fool.com
