Baidu and other major Chinese technology shares fell Thursday after Beijing’s market watchdog summoned the firms over regulatory concerns.
The Beijing Municipal Administration for Market Regulation cited issues including false advertising and failure to disclose promotional details.
Baidu’s shares dropped 3.0% in Hong Kong trading following the announcement.
The company is also managing fallout from its recent addition to a U.S. Department of Defense list of military-linked firms.
Bearish sentiment continues as technical analyses suggest further declines amid a slowing advertising business.