Baidu-backed iQiyi files confidential Hong Kong listing

Nasdaq-listed iQiyi is a Beijing-based video-streaming firm backed by Baidu, and filed a confidential application to list in Hong Kong.

The plan remains subject to HKEX and Chinese regulatory approvals.

Bloomberg previously reported iQiyi was seeking to raise about US$300 million, and the move follows other US-listed Chinese firms turning to Hong Kong amid US regulatory scrutiny.

iQiyi also announced a US$100 million buyback and previewed long-form video AI tool Nadou Pro.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Hong Kong’s reformed listing rules offer an escape route

The Holding Foreign Companies Accountable Act is a U.S. law that can delist foreign firms if U.S. regulators cannot inspect their auditors for three straight years 1.
That threat has pushed many Chinese firms to treat a Hong Kong listing as a fallback option 2.
Hong Kong Exchanges and Clearing (HKEX) changed its listing rules in January 2022. The reforms dropped the “innovative companies” test for some secondary listing applicants, which covered overseas issuers without a WVR structure. HKEX also lowered some market capitalization thresholds, which widened the pool of eligible firms 3.

A secondary listing can become a launchpad

A Hong Kong listing can reduce exposure to U.S. delisting risk and connect firms with Asia-based investors who know the brand and services 1.
If 55% or more of global trading volume moves to Hong Kong during the most recent financial year, HKEX treats the issuer as dual-primary in Hong Kong. Secondary-listing waivers then end, with a grace period to meet the full rules again 4.
Dual-primary status can help some firms reach Hong Kong market channels such as Stock Connect, a program that links the Hong Kong and mainland China stock markets. It lets mainland investors buy eligible Hong Kong-listed shares, subject to eligibility and index requirements, which can open access to mainland capital 2.