Tuesday, January 13, 2009

Chinese government taking friendlier approach - Piper

Piper Jaffray notes that in late Nov a story by govt-run
CCTV exposed some unlicensed medical and pharmaceutical
listings on Baidu, which triggered fears that there is a
threat for more similar actions by the govt. However, this
Monday, during a panel hosted by the China Consumer
Society, China govt officials had supportive comments
related to China search engines, suggesting the govt is
adopting a more favorable position toward the company.
Given the govt's position and Baidu's recent actions on
the earlier CCTV accusation, firm believes the likelihood
of additional regulation crack-downs which would
significantly impact BIDU's business has lessened.

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