Exclusive: Baidu ponders delisting with Nasdaq amid tensions between US and China

US, WASHINGTON (ORDO NEWS) — Chinese Internet giant Baidu Inc is considering delisting with Nasdaq and moving to a stock exchange closer to China to boost capitalization amid growing tensions between the US and China over investment, three sources said.

Baidu turned to several reliable advisers to evaluate how this idea could be implemented, including considering issues related to financing and any regulatory response, Reuters sources said.

The discussion is at an early stage and the situation may change, said sources who spoke on condition of anonymity, since this issue is not public.

Baidu declined to comment.

The company cited comments by co-founder and CEO Robin Li, who told the China Daily on Thursday that Baidu is paying close attention to tighter US controls over Chinese companies traded on US exchanges.

“For a good company, there are many options for listing sites, they are not limited only to the United States,” he told the newspaper.

Sources said Baidu believes the company is undervalued on the Nasdaq in New York.

Baidu shares have fallen by more than 60% since reaching a maximum in May 2018, while the Nasdaq Golden Dragon China index, which tracks Chinese companies on the U.S. stock exchange, has lost less than 10% over the same period.

Baidu’s market capitalization of $ 29.59 billion at the close of trading on Wednesday was only 5% of the market value of Alibaba, whose shares are traded in Hong Kong, and American depositary receipts in New York.

Baidu, Ctrip, and NetEase Inc have held preliminary talks with Hong Kong Exchanges and Clearing about a possible secondary listing to follow Alibaba in building an investor base closer to China, Reuters said in January.


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