Baidu Inc. rose to a record high this week, leading a rally among Chinese stocks trading in the U.S., after it reported earnings that beat analysts’ estimates.
American depositary receipts of Baidu, China’s biggest Internet search service, jumped 9.3 percent for a 17 percent weekly gain that would be the most since October 2011. Qihoo 360 Technology Co., which also owns an online search tool, rose to a four-month high, while online travel agency Ctrip.com International Ltd. surged to a record.
Beijing-based Baidu said second-quarter net income rose to 3.55 billion yuan ($572.5 million).
The company’s mobile revenue contributed more than 30 percent of total revenue for the first time, said Chief Executive Officer Robin Li, who holds a master’s degree from the University at Buffalo.
“Baidu’s mobile search has grown really fast, becoming a significant revenue source, while its search tool on desktop computers remains a ‘must-be’ place,’ ” said Tian X. Hou, the founder of TH Capital LLC, a research firm focusing on the Chinese Internet sector. “Its peer Qihoo also advanced as Baidu’s earnings showed that PC search still has good growth momentum.”
Baidu’s ADRs soared to $223.28 in New York, closing in on the $244 average of 25 analyst price estimates compiled by Bloomberg. Qihoo jumped 4.3 percent to $99.74 and Ctrip surged 6 percent to $65.93.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., advanced 0.2 percent to a eight-month high of $40.18, rising 5.1 percent this week.