Chinese ADRs Drop Third Day Amid Mainland Rout as Baidu Plunges
- Gauge of U.S.-traded companies slumps to lowest in three weeks
- Stocks retreat as Baidu outlook underscores slowing economy
U.S.-traded Chinese stocks slid for a third day as speculation mounted that government intervention will fail to support the country’s mainland equity market. Baidu Inc. plunged the most in seven years after it forecast third-quarter sales that trailed analysts’ estimates.
The Bloomberg China-US Equity Index fell 0.6 percent to 118.81 in New York, the lowest in three weeks. The gauge has dropped 6.6 percent in the past three days, following declines in the benchmark Shanghai Composite Index. Mainland-traded stocks have plunged 29 percent from a bull market high in June, even after the government tried to stem the rout with steps including banning sales by some major shareholders, halting IPOs and allowing more than 1,400 companies to suspend trading.