Baidu shows health is a huge flashpoint in China

Hong Kong

BAIDU'S selloff shows health is a huge flashpoint in China. Regulators launched a probe after a dying student accused the country's top search engine of promoting false medical information. Investors have cut more than US$5 billion from Baidu's market capitalisation. That is a big move but not necessarily an overreaction. Health scandals are highly sensitive in the People's Republic and authorities pay close attention to outbursts of online anger.

The investigation focuses on cancer patient Wei Zexi. State media says Mr Wei underwent an experimental treatment advertised on the search engine, and before his death criticised Baidu and the hospital in question online. Angry Internet users accused the US$62 billion search engine giant of prioritising ad dollars over safety. China's Internet overseer stepped in on May 3.