Baidu has confirmed that it is weighing a spin-off and Hong Kong listing of its semiconductor arm, as a fresh wave of investor interest sweeps China’s chip sector.
The search engine giant said on Sunday that Kunlunxin (Beijing) Technology was “in the process of the proposed spin-off and listing in Hong Kong, after reports that the unit planned to file an initial public offering no earlier than the first quarter of next year”.
However, the company cautioned that there was “no assurance” that the proposed spin-off and listing would proceed.
Shares of Baidu opened 3.2 per cent higher at HK$125.60 on Monday, extending a 5 per cent gain last Friday, as investors bet a potential listing could unlock value in its artificial intelligence chip business.
Kunlunxin was recently reported to have completed a new fundraising round, lifting its valuation to about 21 billion yuan (US$2.97 billion).
The latest move comes after Moore Threads Technology, dubbed “China’s little Nvidia”, surged fivefold on its Shanghai debut last Friday, underscoring renewed market optimism about the possibility of China’s semiconductor self-reliance amid persistent tensions with the United States.
