January 2, 2026, 03:00 ET — Market closed
- Baidu said it filed a confidential Hong Kong listing application for its AI chip unit Kunlunxin as part of a proposed spin-off.
- Baidu’s U.S.-listed shares last traded at $130.66, down about 1.3% from the prior close.
- Investors are watching for deal structure, approvals and whether U.S. trading follows Hong Kong’s tech-led rebound.
Baidu Inc said it has submitted a confidential listing application in Hong Kong for its artificial intelligence chip unit Kunlunxin, setting up a proposed spin-off and separate listing. The company said the transaction is not finalized and would require regulatory steps before it can proceed. PR Newswire
Baidu’s push comes as China’s tech groups and investors hunt for domestic computing capacity after tighter U.S. restrictions on advanced chips, and as Hong Kong’s IPO pipeline has revived, Reuters reported. Kunlunxin was valued at about 21 billion yuan ($3 billion) in a fundraising round, the report said. Reuters
Baidu’s Hong Kong-listed shares rose 7.5% to HK$141.30 by midday, according to the South China Morning Post. “The US tech blockade has made it even more urgent for China to move quickly up the value chain,” said Gary Ng Cheuk-yan, senior economist at Natixis Corporate and Investment Bank. South China Morning Post
Asian markets opened 2026 with a tech-led rally in Hong Kong, where Alibaba rose 3.2% and Baidu gained 7.5%, the Associated Press reported. The move put U.S.-listed Chinese ADRs on watch for a catch-up trade when New York markets reopen later Friday. AP News
The listing plan lands amid a broader surge in investor appetite for China-linked AI hardware. Business Insider reported that Shanghai Biren Technology jumped nearly 120% on its Hong Kong debut after raising HK$5.58 billion, with the retail portion subscribed more than 2,300 times. Business Insider
Analysts moved quickly on Baidu. Jefferies raised its price target on Baidu to $181 from $159 and maintained a “Buy” rating, according to Investing.com, which said the bank expects the carve-out to be executed via a global offering that includes a Hong Kong public offer and an institutional placement. Investing
A confidential filing starts the exchange review process without an immediate public prospectus. A spin-off separates a unit so investors can value it on its own, even if the parent retains control.
Baidu said Kunlunxin is a non-wholly owned subsidiary and expects it to remain a subsidiary after any listing. The company’s American depositary shares trade in New York, and one Baidu ADS represents eight Class A ordinary shares, according to a company release. ADVFN
Before the next session, traders will watch whether Baidu’s ADR follows Hong Kong’s upbeat tone or stays pinned near the $130 area after the last close. Finviz data showed the last close at $130.66, down 1.30%. Finviz
Deal-watchers are also looking for the first public clues on how much of Kunlunxin Baidu intends to float, and what valuation investors will apply once formal documents are published. Any timetable signals will matter because the filing is confidential and details remain scarce.
Earnings remain the next major company checkpoint for investors trying to separate near-term cash generation from long-horizon AI spending. Investing.com’s calendar lists Baidu’s next earnings report date as March 4. Investing
