On its first day of trading on the NASDAQ last Friday, Chinese search engine company Baidu, touted as the “Chinese Google”, closed 354% higher than its IPO price of $27. The stock ended the day’s trading at $122.54, a hefty premium that reminded the market of the heady days of the dot com bubble. The stock slipped in Monday’s trade to close slightly more subdued at $115.50.
This spectacular debut is seen as a sign of the significant growth potential in the Chinese Internet industry. Baidu currently is the leading search engine in China. Both Google and Yahoo! are actively exploring opportunities in the Chinese market.