Chinese search engine giant Baidu Inc is contemplating delisting from the U.S. Nasdaq and migrating to an exchange closer in Asia to raise its valuation as the tension between the United States and China over investments continue to escalate.
One of the earliest U.S. listings from China, Baidu has already approached some of its trusted experts to see how the process can be carried out in the best of everyone’s interest.
Baidu gathered that it was underrated on the Nasdaq exchange in New York. The company has however declined to comment on the matter.
Baidu’s co-founder and Chief Executive Robin Li had told China Daily that the organization is paying close attention to the tighter U.S. scrutiny of Chinese companies listed in the country.
“For a good company, there are many choices of destinations for listing, not limited to the U.S.”
– Robin Li, Co-founder and CEO – Baidu
Baidu’s shares have dropped more than 60% since their height point in May 2018 while the Nasdaq Golden Dragon China Index.HXC, which follows Chinese firms listed on the exchange has lost just 10% over the same period.
Baidu, Ctrip and NetEase Inc have all held introductory talks with Hong Kong Exchanges and Clearing about a potential secondary listing to follow Alibaba in building an investor base closer to China.
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