shares of alibaba group holding ltd BABA and other Chinese names including JD.com Inc JD and Pinduoduo Inc PDD move down on Tuesday Baidu Inc BIDU Shares fell on mixed second-quarter results.

• BIDU earnings: $4.43 billion lost Estimate of $4.45 billion
• BIDU EPS: $2.36 hit Estimate of $1.63

“Despite a challenging macroeconomic environment brought on by Covid-19, Baidu Core generated revenue of RMB23.2 billion in the second quarter, while Baidu AI Cloud revenue maintained its rapid growth momentum of 31% YoY and 10% YoY quarterly comparison maintained,” said Robin LiCo-founder and CEO of Baidu.

What else happens: Further developments in the audit could also contribute to the downside of Chinese equities.

according to a Reuters reportUS regulators have selected Alibaba and other US-listed Chinese companies for audit inspections expected to begin next month.

The news comes after China’s Securities and Exchange Commission and the US Public Company Accounting Oversight Board (PCAOB) reached an agreement on Friday to cooperate on audits of US-listed Chinese companies.

The report notes that three sources familiar with the matter said Alibaba has been informed that it will be one of the first Chinese companies to have its audits inspected by the PCAOB.

See also: China tightens regulatory scrutiny of overseas borrowing

BABA, JD, PDD Price Action: At press time, Alibaba is down 3.44% to $93.28, JD.com is down 2.33% to $60.87, and Pinduoduo is down 2.41% to $64.45.

Photo: courtesy of Alibaba.