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Baidu said to eye secondary listing in Hong Kong as China tech firms seek hedge against US uncertainty
- Baidu has conducted an internal assessment of such a move, and has hired representatives in Hong Kong, according to reports
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Coco Fengin Guangdong
Nasdaq-listed Chinese internet giant Baidu is reportedly weighing up a secondary listing in Hong Kong, joining a growing number of Chinese tech companies eyeing the city as a potential hedge against US regulatory uncertainties and to better attract mainland capital.
Baidu has in recent days conducted an internal assessment of such a move, and has hired representatives in Hong Kong and been in touch with some large institutions in the city, according to reports by well-known Chinese bloggers IPOZaozhidao and IPONews on public WeChat accounts, which did not cite sources.
Baidu declined to comment on the issue on Tuesday.
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After Alibaba's high-profile US$13 billion Hong Kong dual listing in 2019, several US-listed Chinese firms are thought to be eyeing a secondary listing on the Hong Kong Stock Exchange. The Hong Kong bourse is discussing secondary listings with Chinese technology companies including Ctrip.com and NetEase, according to a recent Bloomberg report, citing people familiar with the matter.
“It wouldn't surprise me if every single large cap [China] ADR is looking at a secondary listing in Hong Kong,” said Conor O’Mara, managing director of Asia TMT equity sales at brokerage Jefferies, adding that “there is clearly a risk involved in only being listed in the US [for Chinese companies].”
Amid rising trade and tech tensions between China and the US, Washington has been ratcheting up its scrutiny of Chinese firms with a large presence in the US. A bill, dubbed the “Equitable Act”, was introduced in June 2019 and proposes to delist public firms that do not fully open their audit books to American regulators.
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