Baidu shares jump on media reports Google nears decision on closing its China search engine

more images

more images

Baidu up on reports Google may end China search

NEW YORK — U.S.-traded shares of Baidu Inc. jumped Monday following media reports that rival Google Inc. is nearing a decision to close its search engine in China.

China has the world’s largest Internet population. Google holds about 35 percent of the country’s search market, compared with about 60 percent for Baidu, so Google’s exit would be a big boost to the company.

Reports surfaced over the weekend that Mountain View, Calif.-based Google was close to shutting down its China search engine after negotiations over censorship stalled. Google wouldn’t comment.

Google had said January it would stop complying with China’s censorship rules after it discovered hackers had tricked human-rights activists into exposing their e-mail accounts.

On Friday, China’s top Internet regulator said Google must obey the country’s laws or “pay the consequences.”

Baidu’s American Depositary shares rose $20.79, or 3.8 percent, to $571.03 in afternoon trading. Earlier, the stock hit a 52-week high of $628.50.

Shares of Google, meanwhile, fell $19.66, or 3.4 percent, to $559.88. Google shares have traded between $527.74 and $579.16 since the beginning of March.