Abstract:
Baidu Group announced on the Hong Kong Stock Exchange that, according to the notice issued by the Shanghai Stock Exchange on the same day, Baidu Class A ordinary shares have been included in the Hong Kong Stock Connect underlying securities under Shanghai-Hong Kong Stock Connect, effective September 7, 2026. Today, Baidu's Hong Kong stock price rose by more than 5.68% during the session, becoming one of the top gainers in the Hang Seng Technology Index.
Citigroup previously analyzed that if Baidu is approved to be included in the Hong Kong Stock Connect, it may become a key catalyst to attract considerable capital inflows and buying interest. According to third-party predictions, Baidu's net new southbound funds may reach US$6 billion, or HK$47 billion, in the next two to four months.
Baidu stated in the announcement that being included in the Shanghai-Hong Kong Stock Connect marks an important step for the company in expanding to investors in mainland China. This inclusion is expected to further diversify its investor base and enhance the liquidity of its shares.
It is reported that Baidu will not raise funds through additional issuances, bonds or convertible bonds. The company's total cash and investment exceeds US$40 billion, and related investments have shown a self-generating trend. In the next two quarters, the market's main concerns include: Baidu's smart cloud business continues to maintain a good growth rate, Luobo Kuaipao enters more new cities, and Kunlun Core goes public.
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