Hospital group boycott hits Baidu shares as ad revenue threatened

Baidu (BIDU.NYSE) shares fell 2.4% to US$203.60 after China Business News reported that members of an association of private hospitals in China, Bloomberg reported. The company, which is cracking down on what it says is false healthcare information in advertisements posted through its site, rejected ad requests last year for over 7,800 hospitals affiliated with the Puritan Healthcare Industry Chamber of Commerce, according to that group. Members of the healthcare group represent about 15% of Baidu’s search revenue, and during each week the firm will lose about 1% of sales, according to 86Research Ltd.