Jan 2 (Reuters) – Chinese internet search giant Baidu (BIDU) said on Friday that its artificial intelligence chip subsidiary Kunlunxin had confidentially submitted a listing application to the Hong Kong Stock Exchange on Jan 1, paving the way for a spin-off and separate listing.
After the news broke, Baidu’s US stock price soared 12% before the market opened on Friday.
Reuters had earlier reported that Kunlunxin was planning an initial public offering in Hong Kong after completing a financing round that valued it at 21 billion yuan ($3 billion).
China is pushing to develop domestic alternatives to U.S. semiconductors as Washington escalates export restrictions on advanced chips, and several other Chinese artificial intelligence chip companies have announced initial public offerings.
Earlier this week, Chinese artificial intelligence startup MiniMax said it expected to raise up to HK$4.19 billion ($538 million) in a Hong Kong offering, while semiconductor design firm Shanghai Biren Technology raised HK$5.58 billion in a public offering, according to an exchange filing.
Semiconductor majors OmniVision Integrated Circuits and GigaDevice Semiconductor have also started IPO inquiries, aiming to raise about $600 million each.
London Stock Exchange data shows that 114 newly listed companies in Hong Kong raised US$36.5 billion in 2025, the strongest year since 2021 and more than three times the US$11.3 billion raised in 2024.
Kunlunxin is expected to remain a subsidiary of Baidu after the proposed spin-off, the company said.
Details such as the size and structure of the offering have not yet been finalized, the company said.
Kunlunxin was established in 2012 as Baidu’s internal business unit to develop artificial intelligence chips. Although Baidu retains a controlling stake, Kunlunxin has operated independently.
Kunlunxin mainly supplies chips to Baidu, but has expanded external sales in the past two years.
($1 = 6.9931 yuan)
(1 USD = 7.7847 HKD)
(Reporting by Sneha Kumar in Bengaluru; Editing by Tom Hogue)