The notification regarding the inclusion of shares eligible for the Shanghai-Hong Kong Stock Connect, effective on September 7, 2026, allows Baidu Class A Ordinary Shares to be listed on the Hong Kong Stock Connect. It is expected that the net inflow of funds flowing towards South Korea will reach $6 billion in the next 2 to 4 months. This approval will change the capital entry and valuation framework, driving Baidu’s pricing logic from “Chinese-based internet companies” to “China’s leading AI company.” According to the segment valuation method, the theoretical potential valuation of Baidu’s six major businesses is approximately HK$1.01 trillion. Currently, Baidu’s market value is lower than its total net cash of HK$283.1 billion, and its AI-related revenue accounts for more than half of its total revenue, maintaining rapid growth. With the integration of both foreign and South Korean capital frameworks, Baidu, as the only large company in China with a full-stack layout of “core, cloud, and model technologies,” is experiencing a logical shift from being valued at less than its true value to having pricing power over infrastructure.
The notification regarding the inclusion of shares eligible for the Shanghai-Hong Kong Stock Connect, effective on September 7, allows Baidu Class A Ordinary Shares to be listed on the Hong Kong Stock Connect. It is expected that the net inflow of funds flowing towards South Korea will reach $6 billion in the next 2 to 4 months. This approval will change the capital entry and valuation framework, shifting Baidu’s pricing logic from “overseen internet companies” to “China’s leading AI company.” Based on the Segmented Valuation Method (SOTP), the theoretical potential valuation of Baidu’s six main businesses is approximately HK$1.01 trillion. Currently, Baidu’s market value is lower than its total net cash of HK$283.1 billion, and its AI-related revenue accounts for more than half of its total revenue, maintaining rapid growth. With the integration of both foreign and South Korean capital frameworks, Baidu, as the only large company in China with a full-stack layout of “core, cloud, and model bodies,” is witnessing a logical shift from being valued at less value to having pricing power over infrastructure.