(Yicai Global) June 28 -- Baidu [NASDAQ: BIDU], one of China's leading browsers, has authorized a USD1 billion share repurchase program while preparing for a potential China depositary receipts issuance. Its New York-listed shares slid on the announcement.

Baidu will buy back some of its stock over the next 12 months at prices based on market conditions via open markets, privately negotiated transactions, block trades or other legal forms in accordance with relevant laws and regulations, the Beijing-based firm said on its website. It plans to pay for the buyback with cash reserves.

The Chinese internet giant's stock closed down 3.1 percent to 243 on the bourse yesterday. Shares fell in May after the company's chief operating officer, Qi Lu, announced he will leave the firm. Chinese stocks have sold off recently amid concerns of a trade war with the US.

Baidu is assessing the possibility of issuing CDRs to its announcement to the US securities commission on June 25.

Editor: Emmi Laine