Chinese search and artificial intelligence company Baidu (BIDU) said on Thursday that it intends to change its Hong Kong trading status from secondary to primary, with the transition scheduled to take effect on September 1, 2026. After the disclosure, Baidu’s Hong Kong-listed shares (HK:9888) rose more than 6%.

Baidu, Inc., BIDU

The move would give Baidu dual primary listings on the Hong Kong Stock Exchange and Nasdaq. Until now, Nasdaq has been the company’s only primary listing venue. Baidu first listed on Nasdaq in 2005 and added its Hong Kong secondary listing in March 2021, part of a wave of U.S.-traded Chinese companies that sought Hong Kong listings around that time.

One of the main benefits of the conversion is eligibility for the Stock Connect program, which links Hong Kong’s markets with investors in Mainland China. The connection could open the door to new capital inflows for the company. Baidu would not be the first to make the switch: Alibaba converted its Hong Kong secondary listing to primary status in 2024 and was subsequently admitted to Stock Connect.

Baidu did not give a specific timetable for inclusion in Stock Connect, but such additions typically occur within several months after a company meets the required market capitalization and trading volume standards. Given Baidu’s size, market observers generally expect the company to qualify.

Access to Mainland Capital Through Stock Connect

Stock Connect, launched in 2014 with the Shanghai link and extended to Shenzhen two years later, allows investors in Mainland China to buy Hong Kong-listed shares through their local brokerages. For Baidu, that access could attract greater demand from domestic investors.

As one of China’s leading developers of artificial intelligence, the company operates in a sector that draws significant attention from mainland investors. That makes Baidu a likely candidate for inclusion once it satisfies the program’s eligibility requirements.

Alongside the listing announcement, Baidu also disclosed updates to its board. Chairman and CEO Robin Yanhong Li leads a board that includes four independent directors: Yuanqing Yang, Jixun Foo, Sandy Ran Xu, and Xiaodan Liu.

The independent directors each hold committee roles. Jixun Foo chairs both the compensation committee and the nominating and corporate governance committee, while Xiaodan Liu chairs the audit committee.

Mitigating U.S. Exchange Delisting Risk

A primary Hong Kong listing would also give Baidu added protection amid ongoing regulatory tensions between Washington and Beijing. If the company were ever removed from U.S. exchanges, it would still have a fully functioning primary listing in Hong Kong.

Those tensions date in part to the Holding Foreign Companies Accountable Act, a 2020 U.S. law that allows regulators to delist foreign companies whose auditors cannot be inspected for three consecutive years. U.S. and Chinese authorities reached an audit-inspection arrangement in 2022 that eased the immediate threat. Still, the issue remains a relevant consideration for Chinese companies listed in New York as regulatory disputes between the two countries continue without a clear resolution.

The latest analyst rating for Baidu’s Hong Kong-traded shares remains Buy, with a price target of HK$131.00.

Baidu’s Hong Kong market capitalization currently stands at HK$247.9 billion.