Hong Kong Stocks Movement | BIDU-SW (09888) Opens Over 3% Higher as Company Evaluates Spin-off of Kunlunxin for IPO

Stock News12-08 09:27

BIDU-SW (09888) opened over 3% higher, rising 3.29% to HK$125.6 by the time of reporting, with a trading volume of HK$200 million. On the evening of December 7, BIDU-SW issued an announcement clarifying media reports from December 5, 2025, suggesting the company was considering a spin-off and independent listing of its non-wholly owned subsidiary, Kunlunxin (Beijing) Technology Co., Ltd. The company stated it is currently evaluating the proposed spin-off and IPO. If pursued, the move would require relevant regulatory approvals, with no guarantee of completion.

J.P. Morgan previously noted that BIDU-SW's investment narrative is undergoing a fundamental shift—transitioning from a traditional search advertising firm to an AI infrastructure provider. The bank expects Kunlunxin's chip sales and GPU computing demand to significantly boost revenue growth. J.P. Morgan projects Kunlunxin's revenue to surge sixfold, from approximately RMB 1.3 billion in 2025 to RMB 8.3 billion in 2026.

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