Chinese internet giant, Baidu, has come under fire for its search ads.

After the CCTV broadcast, Baidu shares fell 4% Monday and 5% Tuesday.

In a special report by CCTV, the nation's dominant search engine was found to have promoted the registration of fake websites on its search platform, leading to fraud. Now, Baidu could be facing tougher rules at a time when it is cementing its dominance of the booming internet market.

Since the report was broadcast, shares of the Nasdaq-listed company have tanked - losing nearly a tenth of its value, or 5 billion US dollars in just two days. Baidu has built its share of China's search market up to over 70 percent since Google's high-profile exit last year.

However, some analysts remain optimistic, saying the steep fall in Baidu's share price is likely to be short-term, and say the company is still a buy unless regulators decide to introduce measures "which will limit its ability to monetise its search platform".