Baidu's HKEX-listed Class A ordinary shares became tradable by eligible mainland Chinese investors on Sept 7 after inclusion in both the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs took effect. The move follows Baidu's conversion to a dual primary listing in Hong Kong on Sept 1 and is expected to broaden its investor base and enhance share liquidity.
Mainland Chinese investors gained direct access to Baidu's Hong Kong-listed shares on Sept 7 as the AI company's Class A ordinary shares were admitted to both Stock Connect programs, a structural shift expected to channel southbound capital into the HKEX listing.
"The inclusion marks an important step toward expanding the Company's reach among Chinese Mainland investors and is expected to further diversify its investor base and enhance the liquidity of its shares," Baidu said in a statement.
The Shenzhen inclusion follows the Shenzhen Stock Exchange's Sept 7 announcement adjusting the eligible stock list for Hong Kong Stock Connect. The Shanghai inclusion was previously announced and became effective the same day. Baidu trades on HKEX under ticker 9888 (HKD counter) and 89888 (RMB counter), and on Nasdaq under BIDU, where one ADS represents eight Class A ordinary shares.
The Stock Connect inclusion follows Baidu's conversion to a dual primary listing in Hong Kong on Sept 1, which made the company eligible for the programs. Baidu's HKEX shares traded at 91.10 HKD on Sept 6, down 5.01 percent, while the Nasdaq-listed ADS closed at 99.47 USD on Sept 4, up 4.07 percent. The stock has fallen 30.76 percent year-to-date on HKEX, compared with a 23.87 percent decline on Nasdaq.
The inclusion is expected to attract southbound capital flows from mainland investors, a channel that has historically boosted trading volumes for newly eligible HK-listed Chinese tech companies. Baidu's dual listing in Hong Kong and Nasdaq, combined with Stock Connect access, gives mainland investors a direct route to trade the company's shares without going through the ADS structure. The Hang Seng Index traded at 25,376 on Sept 4, down 1.07 percent, while the Shanghai Composite stood at 3,921, down 0.24 percent.
Baidu's move follows a broader trend of Chinese tech companies seeking to broaden their investor base through Stock Connect eligibility. The company faces intensifying competition in AI from ByteDance, which recently committed $30 billion to its AI efforts, and Alibaba, which raised $10.2 billion through an AI share sale in August. Zephirin upgraded Baidu to Hold from Sell with a price target of HK$115 from HK$92 in August, citing improving fundamentals.
The Stock Connect inclusion comes as Baidu's CFO Henry He has said AI investments could soon match search profitability, suggesting the company sees its AI push as a key growth driver. Southbound flows through Stock Connect have historically provided a meaningful liquidity boost for newly eligible names, and Baidu's expanded access could help narrow the valuation gap between its Hong Kong and US listings.
This article is for informational purposes only and does not constitute investment advice.
