On the first trading day of 2026 in Hong Kong, the market focused on the confirmed spin-off and listing of Kunlun Xin (Beijing) Technology Co., Ltd. ("Kunlun Xin"), a non-wholly owned subsidiary of Baidu (BIDU.O, 09888.HK). Stimulated by this significant positive news, Baidu's Hong Kong stock price surged 9.35% on January 2, while its Nasdaq-listed stock price in the U.S. soared even higher by 15.03%, both hitting two-year highs.
The sharp rise in Baidu's stock price was clearly driven by the core strategic move officially announced that day: Kunlun Xin, a subsidiary of Baidu Group, had submitted a main board listing application to the Hong Kong Stock Exchange, formally initiating the process for an independent IPO spin-off. Following the recent listings of domestic chip companies like Moore Threads and MetaX on the capital markets, Baidu is also planning to promote the independent listing of its chip subsidiary, Kunlun Xin. On January 2, Baidu Group issued an announcement titled "Proposed Spin-off and Separate Listing of Kunlun Xin on the Main Board of The Stock Exchange of Hong Kong Limited." The announcement stated that on January 1, 2026, Kunlun Xin had submitted its application form (AI Form) to the Hong Kong Exchange in a confidential manner through its sponsoring broker. The announcement noted that Kunlun Xin is a non-wholly owned subsidiary of Baidu and is a "leading supplier of AI computing chips and related integrated software and hardware systems." Upon completion of the proposed spin-off, Kunlun Xin is expected to remain a subsidiary of Baidu. Baidu explained the reasons for spinning off Kunlun Xin in the announcement. Specifically, firstly, the spin-off can more fully reflect the value of the Kunlun Xin Group based on its own strengths, allowing investors to independently assess and measure its performance and potential. Secondly, the reason lies in the business nature. Baidu stated that Kunlun Xin's business will attract an investor base focused on general-purpose AI computing chips and related software/hardware system businesses. Thirdly, Baidu mentioned that "the business of the Kunlun Xin Group has reached a scale sufficient to seek a listing status." After the spin-off listing, Kunlun Xin will benefit from an enhanced image among customers, suppliers, and potential partners, strengthening its position to secure more business and achieve growth, while Baidu, as a shareholder of Kunlun Xin, will also benefit accordingly. Kunlun Xin is Baidu's supplier of AI computing chips and related integrated software/hardware systems, formerly known as Baidu's Intelligent Chip and Architecture Department. According to its official website, its self-developed chip project dates back to 2011. 2021 was a key milestone for Kunlun Xin's development. In April of that year, Kunlun Xin completed its first independent financing round, with Ouyang Jian, former Chief Chip Architect at Baidu, appointed as CEO. After the initial funding round, Kunlun Xin disclosed a valuation of approximately RMB 13 billion. Tianyancha data shows that between 2022 and 2025, Kunlun Xin completed Series A to Series D financing rounds. Although its valuation was not updated, it had attracted investors including BYD, China Securities Capital, Legend Capital, Zhongguancun Science City, and the Beijing Artificial Intelligence Industry Investment Fund. In August last year, Kunlun Xin won a major contract valued at over RMB 1 billion in the telecom operator sector. In the "CUDA-like Ecosystem" segment of China Mobile's 2025-2026 AI General Computing Equipment (Inference Type) centralized procurement project, Kunlun Xin-based AI server products ranked first in the awarded share, securing 70% in both Package 1 and Package 2, and 100% in Package 3. At the Baidu World Conference later that year, Baidu launched the new-generation Kunlun Xin chips and the super-node product Tianchi, providing a roadmap for these products. Among the new-generation Kunlun Xin products, the Kunlun Xin M100 is optimized for large-scale inference scenarios, focusing on cost-effectiveness, and is scheduled for launch in 2026. The Kunlun Xin M300 targets the training and inference needs of ultra-large-scale multimodal models, emphasizing high performance, and is set for launch in 2027. The super-node products, Tianchi 256 Super Node and Tianchi 512 Super Node, will be officially launched in 2026. A single Tianchi 512 Super Node can complete the training of a trillion-parameter model. At the time, Shen Dou, Executive Vice President of Baidu Group, stated that Kunlun Xin would launch new products annually over the next five years. According to media reports, IDC's 2024 China Accelerated Computing Chip Shipment Report indicated that Kunlun Xin's shipments reached 69,000 units, approximately 2.65 times that of Cambricon (26,000 units). Kunlun Xin is not only a contributor in terms of sales figures but also a critical component in Baidu's full-stack AI cloud capabilities (chips, deep learning framework PaddlePaddle, Qianfan MaaS platform/foundation models, application layer), forming an efficient feedback loop. Previously, a BOCI Research report pointed out, based on market feedback, that Kunlun Xin has reached or even surpassed many leading industry players in several aspects, especially regarding CUDA compatibility. Wang Peng, Associate Researcher at the Beijing Academy of Social Sciences, noted that spinning off Kunlun Xin is a key strategy for Baidu to break through with "hard technology." "Releasing the technological premium of the chip business through independent financing can not only enhance Kunlun Xin's own valuation but is also expected to inject new momentum into Baidu Group's overall market capitalization, driving a leap in the Group's total value." Zhang Guobin, CEO of Elecfans, stated that Kunlun Xin has made significant technological progress, with its chips being competitive in terms of performance and power efficiency. From a product perspective, the Kunlun Xin P800 supports 8-card and 16-card configurations, with a maximum aggregate throughput of 482 inferences per second, making it the first domestic chip supporting single-machine deployment of the full-blooded version of large models like DeepSeek V3/R1671B. Furthermore, the chip adopts an XPU scalable architecture, achieving higher energy efficiency compared to traditional GPUs. Simultaneously, its deep integration with Baidu's PaddlePaddle framework has improved inference optimization efficiency by over 30%. If the spin-off of Kunlun Xin represents a single-point breakthrough for Baidu, the broader context is the overall leap of China's AI chip industry. Since the second half of 2025, domestic semiconductor manufacturers have collectively rushed to the capital markets, forming a wave of Chinese chip company listings. Among the "Four Little Dragons" of domestic GPUs, Moore Threads (688795) and MetaX (688802) have already listed on the A-share market, becoming highly sought-after new stock subscriptions at year-end. Enflame Technology recently completed its IPO辅导 and will apply for a listing on the STAR Market. On January 2, Biren Technology (06082.HK) also listed on the Hong Kong Stock Exchange, becoming the first new listing of 2026 on the Hong Kong market and the "first GPU stock on the Hong Kong market." These domestic AI chip companies also saw very high gains on their first trading days,堪称 "wealth creation myths." For example, Moore Threads closed at 600.5 yuan per share on its first day, a gain of 425.46%, with an intraday peak increase of 502%; as of January 2, 2026, its market capitalization was RMB 276.3 billion. MetaX saw a maximum first-day gain of over 700%; as of January 2, 2026, its latest market capitalization was RMB 232.1 billion. Currently, Kunlun Xin's listing pace appears very rapid. It has already confidentially submitted its application to the HKEX less than a month after the previous announcement regarding the proposed spin-off. Clearly, behind this collective listing of Chinese AI chips on the capital markets lies a profound restructuring of China's AI chip market landscape. Currently, the Chinese chip industry is evolving towards a new pattern of "multiple strong players coexisting, with scenario specialization." Within this, Kunlun Xin aims to position itself as the "foundation for general-purpose AI computing power," expanding boundaries through technological breakthroughs and consolidating strength through an open ecosystem, striving to become a core Chinese force in the global AI computing landscape. Zhang Guobin, CEO of Elecfans, stated that based on current public information, Baidu's Kunlun Xin is in the first tier of the domestic AI chip market. Zhang believes that Kunlun Xin's independent listing will have multifaceted positive impacts on domestic computing power autonomy and the AI industry chain, such as achieving computing power autonomy and refining the AI industry chain, which will help enhance the overall competitiveness and autonomy of China's AI industry. On January 3, Goldman Sachs released a latest research report suggesting that, based on their core calculations, if the market assigns Kunlun Xin a valuation multiple similar to Cambricon's (40x price-to-sales ratio), the value of Baidu's 59% stake could reach a staggering $22 billion, remarkably equivalent to 45% of Baidu's current total market capitalization! Therefore, against the backdrop of Baidu confirming the spin-off and independent IPO listing of Kunlun Xin in Hong Kong, related A-share listed companies that hold stakes in Kunlun Xin are undoubtedly poised to benefit directly.
From the chart above, we can see that among the related A-share listed companies holding stakes in Kunlun Xin, shares like China-Singapore Suzhou Industrial Park Development Group Co., Ltd. appear to have greater upside potential. According to public information, the company holds a 3.63% stake in Suzhou Yuanhe Puhua Zhixin Equity Investment Partnership, which is a major investor in Kunlun Xin, holding a 0.33749% stake in Kunlun Xin. Certainly, more crucially, the company has not only made substantial investments in Kunlun Xin but has also, through long-term strategic布局, invested in numerous currently hottest industry sectors, including AI chips, commercial aerospace, robotics/embodied AI, nuclear fusion, quantum technology, brain-computer interfaces, and the low-altitude economy. In the field of AI chips, the company has invested in Moore Threads (full-function GPU), MetaX (high-performance GPU/DSA), Kunlun Xin (general-purpose AI chip), Denglin Technology (GPU), Beijing Xingyun Integrated Circuit (large model inference chips), Jindie Times (RISC-V high-performance CPU), Changguang Chenxin (CMOS image sensors), Qingcheng Jizhi (domestic intelligent computing chips), Yuanli (Beijing) Semiconductor (innovative AI Chiplet supplier), Inpixon Semiconductor (high-performance mixed-signal chips), Yingweixin (silicon photonics chips), Qiming Photonics (silicon-based photonic integrated chips), Mingxin Qirui (memory chips), Kaixinhong (RISC-V processor chips), Hanhua Semiconductor (GaN), Jingyue Semiconductor (SiC), Zhongrui Hongxin (SiC), Qingxin Semiconductor (ASIC), Ouye Semiconductor (system-level SoC chips), Yuxi Semiconductor (high-performance RF/microwave core chips), Xinband Technology (SoC chips), Xinsheng Semiconductor (automotive-grade chips), and Yitai Microelectronics (automotive-grade chips), among others. In the commercial aerospace sector, the company has invested in leading enterprises such as Oriental Space (private commercial rockets), Lingkong Tianxing (private commercial rockets), Yushi Space (private commercial rockets), Shanghai Yuanxin Satellite Technology (dubbed the Chinese version of SpaceX), Shanghai Gesi Aerospace Technology (commercial satellite R&D, design, and intelligent batch manufacturing), Shanghai Taiyi Weixing Aerospace Technology (ultra-low orbit AI remote sensing satellite constellation), Lanxing Guangyu (integrated space-air-ground information network high-speed pathway), Huanxin Yilian (space laser communication), Jiangxi Jiuyou Aviation Equipment (commercial aerospace special structural components), Chengdu Guoxin Chuangzhi Technology (millimeter-wave digital phased array microsystems), and Chengdu Tianrui Tong Technology (millimeter-wave phased array technology). In the robotics/embodied AI field, the company has invested in leading companies including Unitree Robotics, Qianxun Intelligent, Yun Shenchu Technology, Zhiyuan Robot, Songyan Power, Qianjue Robot, Yuanluo Technology, Youliqi Robot, Xingyuan Zhi Robot, Youai Zhihe, Yuansheng Intelligent, Shunheng Intelligent, Lingyu Intelligent, Lingzu Shidai, and Jiasu Jinhua Technology.
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