BEIJING -- China markets ended in the green Tuesday, with the Hang Seng Index, made up of the 33 biggest capitalization stocks on the Hong Kong exchange, adding 0.6% to 16,584. The Shanghai Composite Index advanced 1.2% to 1685. In New York on Monday, China stocks were mostly gainers. Gaming stock The9 ( NCTY) rose 5.1% to $24.58, while Netease ( NTES), also a gaming play as well as a portal, was up 4.3% to $17.93. After Baidu ( BIDU) announced a new tie-up with Hewlett-Packard ( HPQ) Monday morning in New York, its shares added 0.9% to close at $89.40. Starting in October 2006, HP computers sold in mainland China will come preloaded with Baidu's search engine in the Internet Explorer browser, so PC users won't need to make an extra trip to Baidu's site to do searches. Web surfers will also be able to access the Baidu homepage by pressing a shortcut key. In a statement, chief technology officer Jerry Liu said the deal was part of Baidu's aim to "ensure a ubiquitous search service." Baidu has already been on a share-grabbing tear. In 2005 it owned 46.5% of China's search engine market in 2005, well ahead of Google's ( GOOG) 26.9%, according to iResearch. Granted, it's not as if linking up with HP will give it a huge boost. HP is only the fourth biggest computer vendor in China, with about 7% of unit share, according to IDC. Still, the partnership underscores Baidu's intention to bolster its dominance in the local search engine market. Meanwhile, competitor Google has been losing share over the past year amid occasional site accessibility problems in China. In late June Google sold its 2.6% stake in Baidu, ending any illusion of cooperation between the two companies. Baidu will offer more details on the competitive outlook when it reports second quarter earnings this Wednesday, July 26.
Among other things, investors are likely to tune in for information about the blogging service that Baidu launched within the past month that could help attract more users to its site.