 Baidu.com is hoping to exploit growing use of the internet in China |
Shares in Baidu.com, the Chinese language internet search firm, have fallen as much as 8.5% on concerns that its sales growth is about to slow. Baidu made a sensational debut on the Nasdaq stock market in the US earlier this month, its shares rising 350% on their first day's trading.
But Baidu's trading forecasts for the third quarter of 2005 suggest that the pace of sales growth may cool.
Baidu is China's leading search engine firm in a rapidly-growing market.
'Pleasing results'
It is competing against the likes of Google and Yahoo in its home market, the world's second largest for web searches.
Publishing second quarter results - the first trading information since its August 5 flotation - Baidu said it had generated net income of 12.1m yuan ($1.5m; �830,000) on sales of 69.7m yuan.
This represented a 380% rise in profits and a 52% rise in sales on the previous quarter.
However, analysts said quarter-on-quarter sales growth would slow to between 11% and 16.5% if Baidu's third quarter forecasts were borne out.
Baidu is expecting revenues of between $9.6m and $10m over the next three months.
The company said it was "very pleased" with its recent trading performance, adding that it had seen a 29% increase in companies paying for advertising or placement.
"Our recent successful IPO demonstrated strong investor confidence in the prospects of China's internet search market, in our business model as well as in our management team," said chairman Robin Li.
Baidu's shares initially fell 8.5% to $75 on Wednesday but recovered slightly to $80.34 by late morning.
Baidu's shares were valued at $27 upon flotation but quickly rose in value to more than $120 after a burst of frenzied buying.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
Our recent successful IPO demonstrated strong investor confidence in the prospects of China's internet search market
