China ADRs Drop as Factory Stabilization Eases Stimulus Urgency

  • Manufacturing PMI signals improvement for second month
  • Search-engine Baidu leads decline as regulators investigate
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U.S.-traded Chinese stocks fell to the lowest in a month as fresh data showing stabilization in the Asian nation’s economy rekindled concern that the government will provide less stimulus this year.

Baidu Inc.’s American depositary receipts posted a decline of 7.9 percent to $178.91, the steepest since July amid a regulatory probe. It was the second-worst performance in the Bloomberg China-U.S. Equity Index, which dropped 1 percent to 116.57 at the close in New York. Markets in China and Hong Kong were closed Monday for a holiday.