Baidu in the driverâs seat
Despite regulatory concerns, the Chinese tech company is a leader in AI and commercialising technology in cars and public transport.
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Along with a number of other Chinese tech names, Baidu shares have seen some pressure since March on regulatory concerns. Despite that, we believe the company has attractive long-term potential given some major advancements it has made in artificial intelligence and commercialising key technology.
US regulators have been pressuring Chinese companies on a mix of issues from adherence to US auditing practices to links to Chinese national defence. The latter led to the virtual delisting of China Mobile recently due to US national concerns. The former (audit concerns) is more relevant to Baidu following the Holding Foreign Companies Accountable Act on compliance with US auditing standards. Baidu is also feeling regulatory creep with the Chinese government expanding its oversight of larger tech companies.
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China Has the Power to Stop Capital Flows From Destabilizing Stock Market, Regulator Says
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, speaks at the Boao Forum for Asia in Hainan province on April 19. Photo: VCG
China’s financial authorities are closely monitoring flows of overseas capital into and out of the mainland stock markets and are confident they can maintain market stability in the event of any sudden large movements of funds, a senior regulatory official said Monday.
The China Securities Regulatory Commission (CSRC) is capable of preventing volatility in domestic markets that may be triggered by large capital inflows and outflows, Fang Xinghai, a vice chairman of the watchdog, said during a panel discussion at the annual Boao Forum for Asia taking place on the southern island province of Hainan.