Shares of Chinese Internet search leader Baidu.com (BIDU) slipped 4.5% in after hours trading after U.S.-based search giant Google (GOOG) announced its second-quarter earnings fell below Wall Street expectations and U.S. paid clicks dropped from the first-quarter. American depositary shares Baidu.com, which trade on the Nasdaq, slipped $13.88 to $289.02 and shares of Google plunged 7.7% to $492.

Jefferies & Company started coverage on Chinese solar company Solarfun Power Holdings (SOLF) with a buy rating and an $18 price target. The firm thinks a one-third stake purchase by Good Energies combined with some changes to top management could boost operational momentum.

Susquehanna reiterated its buy rating and $88 price target on Chinese Internet media company Sohu.com (SOHU) citing strong upside potential for the company’s online advertising and gaming segments. The firm thinks Sohu will report second-quarter revenues of $99.5 million, which would be 4% higher than Wall Street estimates of $95.9 million, and EPS of 71 cents, four cents better than estimates.

Chinese provider of private educational services New Oriental Education & Technology Group (EDU) jumped 6% after the company reported a profit for the fourth-quarter of $1.76 million vs. a net loss of $1.54 million a year ago. The company said quarterly net revenues jumped to $40.17 million vs. $24.7 million last year and well above Wall Street estimates of $34.61 million. New Oriental issued first-quarter net revenue guidance of $103.8 million to $109.5 million vs. street estimates of $106.75 million.

Gabelli & Company started coverage on Chinese alternative energy company LDK Solar (LDK) with a buy rating and a price target of $40 for 2009 and $68 for 2010. The firm said, “With its competitive cost structure, margin expansion opportunities, scalability, and internal polysilicon plants, LDK Solar is well positioned to be the largest global wafer solar manufacturer.”

Piper Jaffray also started coverage on 3SBio (SSRX), a Chinese integrated biotechnology company, with a buy rating and a $12 price target. The firm believes that 3SBio is well positioned to capitalize in the pharmaceutical market in China through organic growth and potential acquisitions.

Piper Jaffray upgraded Gushan Environment Energy (GU), a Chinese biodiesel producer, from neutral to buy, added the stock to its Alpha List and upped its price target to $15 from $14. The firm believes that Gushan will report strong second-quarter earnings due to strength in the diesel market and control of feedstock costs.

Citigroup upgraded Chinese online game operator Shanda Interactive Entertainment (SNDA) from hold to buy and set a price target of $35 a share, citing valuation and the launch of blockbuster game Changchun Online. The firm said the stock is attractive on a risk-to-reward basis with potential upside from positive newsflow from this week’s ChinaJoy event and Changchun’s game metrics. Also, Citigroup noted the stock trades at 11 times 2008 and 2009 EPS.