Baidu's board authorized management to pursue voluntary conversion to dual-primary listing on HKEX Main Board and Nasdaq, expected to take effect in 2026. The move could enable Stock Connect access, allowing mainland Chinese investors to trade the stock directly. Baidu's Hong Kong shares rose 4% Thursday amid broader Apple AI partnership momentum.
Baidu Inc. plans to convert its Hong Kong secondary listing to dual-primary status, a move that could unlock Stock Connect access by September 2026.
"The dual-primary listing, once effective, will enhance the liquidity of its securities, broaden its investor base and provide greater flexibility in accessing both capital markets," the company said in a statement Thursday.
The board has authorized management to proceed with preparatory work, with the conversion expected to take effect within the year. The change is conditional on market conditions and regulatory approvals. Baidu currently trades on Nasdaq under the ticker BIDU and on HKEX under 9888, with one American depositary share representing eight Class A ordinary shares.
The conversion would make Baidu eligible for inclusion in Stock Connect, giving mainland Chinese investors direct access to the stock for the first time. That could boost daily trading volumes and help narrow the valuation discount to US-listed Chinese tech peers. Baidu's Hong Kong-listed shares rose 4% Thursday after Chinese regulators approved Apple Inc.'s AI partnership with the company, which uses Baidu's large language model to power iPhone features in China.
Baidu's US-listed shares closed at $111.48 Wednesday, up 1.6%, and added another 0.6% in after-hours trading. The stock is covered by 34 analysts, with a consensus Buy rating and an average price target of HK$1,191.54, implying about 58% upside from the last close of HK$754.79, according to data compiled by MarketScreener.
The move comes as Chinese companies listed in the US face ongoing delisting risk under the Holding Foreign Companies Accountable Act. Baidu joins a growing list of Chinese ADRs that have sought primary or dual-primary listings in Hong Kong to reduce reliance on US capital markets. The company's AI chip unit, Kunlunxin, is also targeting a Hong Kong IPO that could value the affiliate at $50 billion, according to reports from late June.
The dual-primary listing positions Baidu to capture mainland investor demand through Stock Connect and reduces its dependence on US capital markets. Investors will watch for regulatory approval and the Stock Connect inclusion timeline in the coming months.
This article is for informational purposes only and does not constitute investment advice.
