Baidu’s March 23rd listing in Hong Kong met with a lukewarm reception.
Baidu, the mainland search engine service company, had its second listing in Hong Kong met with a lukewarm reception, with its shares once breaking during the session and finally barely closing flat on March 23. 25, Baidu once fell by more than 10% in early trading.
According to the Economic Daily News on March 26, Baidu closed at HK$252 on the 23rd, the same as the HK$252 per share at which Baidu set its offer price, which had fallen below HK$252 during the session.
In response, some netizens said, “Priced that high, it’s strange that it won’t break.” “Chinese companies that say they want to develop and manufacture chips are either scamming or circling money, to stay away from such companies.”
Baidu carried the AI (artificial intelligence) label when it returned to Hong Kong for the IPO, and Baidu also introduced its AI business at great length in the prospectus. Some media also boasted that Baidu was called the “first AI stock”, but the market response was rather lukewarm.
There was a sluggish market when Baidu’s Hong Kong shares were subscribed to the IPO. According to media reports tracking Hong Kong stocks, Baidu’s margin (financing) multiplier was nearly 34 times. That’s not bad on its own, but if you compare it to B-site (Beili Beili), which is also preparing for a secondary listing in Hong Kong and is still losing money, you’ll see that in the U.S. stock market, B-site shares are currently trading at about $105, less than half of Baidu’s $260. But as of about 17:00 on March 22, the B-site margin multiple had reached 57.51 times and the issue price was as high as HK$808.
The report quoted commentators as saying that technological innovation is something that is done today for tomorrow, and may have to wait until the day after tomorrow or even the day after tomorrow for results, and perhaps not wait until the day after tomorrow for an untimely death. Therefore, the market’s caution is understandable. The AI underlying technology sounds high-tech, but it’s best to wait for the car to be built and earn money.
Commentator Wen Xiaogang said in this regard, Baidu’s listing in Hong Kong is cold in addition to AI reasons, possibly related to the current poor investment environment in Hong Kong, after the Chinese Communist Party forced the “Hong Kong version of the National Security Law” last year, hit the international market confidence in Hong Kong, many foreign capital outflow from Hong Kong, Hong Kong’s popularity plummeted, and funds need a safe political environment to operate.
In these days of Baidu back to Hong Kong listing, its share price in the United States is also falling continuously. According to Sina Technology Beijing Time March 26 morning news, 25 U.S. stocks closed, Baidu closed at $ 204.57, plunging 14.47%, falling for three consecutive days, the market value fell to $ 72.37 billion.
Meanwhile, Baidu’s share price in Hong Kong has fallen 10% from its issue price of HK$252 by the close of business on the 25th.
Netizen “big dummy” on the second listing of Baidu cold said: “a woman married more than one who can still afford to see?”
Netizen “Pires” expressed his disgust for Baidu: “Baidu, which was raised on fake drugs and fake hospitals, will have to pay back eventually!”
Due to the requirements of the U.S. regulators on the audit of Chinese stocks and U.S. companies are treated equally, Baidu, NetEase, Jingdong, New Oriental and other Chinese stocks have returned to Hong Kong secondary listing, to leave a financing back.
Earlier this year, news that Baidu back to Hong Kong secondary listing has been officially launched, according to the Hong Kong Stock Exchange process, back to Hong Kong secondary listing of the company can secretly hand in the form, through the hearing before, without the need to publish specific information on the Stock Exchange website.
On March 4, Baidu received approval for a secondary listing in Hong Kong and formally completed a second listing in Hong Kong in March, raising up to US$5 billion (about HK$39 billion), with Bank of America, CITIC Lyon Securities and Goldman Sachs leading the Baidu listing.
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