It’s official: Baidu has just completed its second IPO in Hong Kong. The Chinese giant has thus raised 3.1 billion US dollars, the figure predicted by analysts.
As the media explains CNBC, in the majority of cases, secondary quotes are not greeted with massive hikes on day one, as the company’s shares are already traded on another stock exchange, in this case, New York. Thus, Baidu shares rose a little less than 1% when it debuted in Hong Kong on Tuesday, March 23.
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This is a great moment for the Chinese search engine which has had a few difficult years, especially in the face of the impressive growth of colossal competitors in the Middle Kingdom, such as Tencent, Alibaba or ByteDance. . Fortunately, the company has been able to diversify and move away from its original sector. Thanks to this, it was able to recover and managed to increase its turnover during the last quarter of 2020.
This was also felt on the company’s shares: if they were at their lowest in their history in March 2020, they broke an all-time high in February 2021. “ I think electric vehicles come into play. At the same time, cloud computing, integrating AI, these are all areas in which Baidu has invested very heavily since 2014 and we are just starting to see the fruits. of these works Explained Brendan Ahern, Head of Investments at KraneShares. Indeed, Baidu is today one of the Chinese leaders in the field of artificial intelligence, and one of the most advanced in the field of electric vehicles and autonomous driving.
Its own system called Apollo is available for sale, and it recently announced a partnership with Geely, the parent company of Volvo, to launch an electric vehicle within three years. The firm is also testing a fleet of robotaxis in the streets of Beijing. The Chinese authorities seem determined to help their companies to break into these areas thanks to favorable measures: the future seems more bright than ever for Baidu.