Beijing (PingWest)—Chinese search engine giant Baidu considers delisting from Nasdaq to increase its valuation amid the growing tension between China and the US, Reuters reported, citing sources familiar with the matter.
Baidu executives believe it is undervalued on the Nasdaq exchange, said the sources. Shares of Baidu are down more than 60% from its 2018 high.
The Chinese search engine giant is working with trusted advisers to evaluate how it could be done if the company were to move ahead with the idea, according to Reuters.
The discussion are at an early stage and are subject to change.
Baidu first declined to comment on the report. But later, the company told Chinese tech media 36Kr that the delisting news was a rumor.
In addition to providing search services, Baidu, the Beijing-headquartered company, is also specializing in IoT and AI. It was founded in January 2000 by Robin Li and Eric Xu, and went public on Nasdaq in 2005. In December 2007, it became the first Chinese company to be included in the NASDAQ-100 index.
Several Chinese technology companies, including Baidu, Ctrip and NetEase, have all held preliminary talks with Hong Kong Exchanges and Clearing about a possible secondary listing to follow in the footstep of Alibaba in establishing an investor base closer to China.
On Wednesday, the US Senate has passed a bill boosting oversight of companies based in China and other nations that could lead to their removal from American stock exchanges.
The Trump administration has also voiced support for stricter oversight of Chinese companies. White House economic adviser Larry Kudlow told Fox Business Network on Tuesday morning that they have to push for more accountability from Chinese companies listed in US markets.