Baidu’s conversion to a dual-primary listing on the Hong Kong Stock Exchange and the NASDAQ Global Select Market will take effect on Tuesday, a move Chinese experts say could broaden its investor base, improve capital-market flexibility and create room for the market to reassess the value of the company’s AI assets.
The conversion makes Baidu eligible for Stock Connect, which would allow mainland investors to trade its Hong Kong shares in yuan and could bring fresh southbound capital. Market watchers have focused on the prospect of greater access to Chinese mainland investors as a key benefit of the change.
Baidu Chief Financial Officer He Haijian said the dual-primary listing will broaden the company’s investor base and improve share liquidity, while marking an important milestone as Baidu’s AI strategy enters a period of returns, according to the Xinhua News Agency. He also said the company is preparing to seek inclusion in the Stock Connect program as soon as possible after the conversion is completed.
Baidu first listed on NASDAQ in 2005 and returned to Hong Kong in March 2021 through a secondary listing. Upon the effective date of the conversion, Baidu will be a dual-primary listed company on the HKEX and the NASDAQ Global Select Market.
Baidu dual-primary listing and mainland investor access
Liang Haiming, dean of the Hainan University Belt and Road Research Institute, said Hong Kong’s transparent institutional framework, deep international investor base and access to mainland capital give it a distinct advantage as a platform for returning US-listed Chinese companies. He added that Hong Kong connects Chinese firms with capital across the Asia-Pacific and global markets and offers greater financing flexibility between Hong Kong and the US.
Liang also noted that Stock Connect broadens access to mainland investors, who he said are more familiar with China’s technology ecosystem and may be better placed to assess the long-term value of businesses such as Baidu’s AI cloud, homegrown chips and autonomous-driving operations.
Baidu’s move follows a similar conversion by NetEase, which became dual-primary listed on the HKEX on June 30.
According to the Securities Times, the HKEX recently implemented new listing rules that lower market-capitalization thresholds, broaden the use of accounting standards and streamline listing procedures, reducing the cost and time for high-quality overseas-listed companies to seek a Hong Kong listing. The report said the new rules have significantly lowered the financial thresholds for overseas issuers seeking a secondary listing in Hong Kong.
Chinese experts quoted in the report said the lower threshold for secondary listings by US-listed Chinese and other overseas companies should not be seen simply as easing standards but as extending a channel once geared toward large unicorns to mid-sized growth companies, which could draw more firms back to Hong Kong. Liang added that Hong Kong’s close integration with the Chinese mainland gives it access to a deep capital pool, strong technology investment demand and a more supportive growth outlook, further strengthening its appeal to returning Chinese companies.
