- The stock price of Baidu Inc (NASDAQ: BIDU) increased by over 5% pre-market today. This is why it happened.
The stock price of Baidu Inc (NASDAQ: BIDU) increased by over 5% pre-market today. Investors appear to be responding positively to a Bloomberg report that the Chinese government is planning to ask media companies like Tencent and ByteDance to display their content in search results.
Specifically, the Ministry of Industry and Information Technology is debating the rules for making hundreds of millions of articles on Tencent’s WeChat messaging app available via search engines like Baidu, according to Bloomberg’s sources. And the Ministry of Industry and Information Technology is also considering making short videos from Douyin also appear in searches.
If this policy is implemented, then it would advance the government’s campaign to reduce the barriers set up between Chinese Internet companies. And by forcing ByteDance or Tencent to enable Baidu and other rivals to display social media content in Internet searches could potentially divert advertising revenue from those services towards search platforms.
But there is no guarantee that the MIIT will proceed with these regulations due to areas of coverage overlaps with other agencies like the Cyberspace Administration of China and the State Administration of Market Regulation.
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