Baidu is considering its options over its Nasdaq listing

Baidu is considering its options over its Nasdaq listing as the US steps closer to imposing fresh regulations on Chinese companies trading in New York… Baidu listed on Nasdaq in 2005, raising $110 million, and US listings have long been a popular way for China’s tech companies to raise capital, given strict regulations at home. But US exchanges and regulators have become increasingly wary of Chinese listings amid the countries’ trade war and after accounting scandals such as at Luckin Coffee. Baidu’s shares have lost roughly 60 per cent of their value since their peak in 2018, cutting its market capitalisation to $30 billion. A growing number of US-listed Chinese companies have turned to secondary listings in Hong Kong to lessen risk and broaden their investor base. Alibaba, China’s largest tech company, last year raised almost $13 billion in the city and its rival online retailer has launched a similar process. Reuters reported yesterday that Baidu was considering delisting from Nasdaq and moving to an exchange closer to home to boost its valuation… Earlier this week Baidu reported that its first-quarter revenue fell 7 per cent from a year earlier as advertisers cut back on spending due to the coronavirus pandemic. Revenue at its core search and news feed business fell even faster, sliding 13 per cent. 

Ryan McMorrow