China’s Baidu Inc. weighs leaving Nasdaq as US pressure mounts


by   |  VIEW 684
China’s Baidu Inc. weighs leaving Nasdaq as US pressure mounts

Amid conflicting narratives over the foggiest Sino-US trade frontiers, Baidu Inc., the Beijing-based Chinese search engine megalith, had been brewing off an option to delist its stocks from Nasdaq in a bid to enlist its shares into an stock exchange closer to China aimed at averting a slew of stiffer regulations for the US-listed Chinese firms, which in effect could amp up the market valuation of the Chinese multinational technology tycoon that primarily centres its focus on internet-related services such as Search Engines alongside Artificial Intelligence, at least three people familiar with the issue had unveiled late on Thursday, the 21st of May 2020, on condition of anonymity as the sources were not authorized to speak publicly over the subject-matter.

On top of that, one of the three sources briefed directly over the issue was quoted saying in an interview with a press agency that the Chinese search engine giant, Baidu Inc., one of the earliest Chinese firms to enlist on US stock exchanges, arranged multiple meetings between some of its trusted advisors and board members in order to find out the best way to proceed with a delisting from the US stock exchange including critical issues likes of regulatory obligations alongside additional financing.

Nonetheless, Thursday’s (May 21st) press agency report was also quoted the source as saying that the discussions had still been in an early stage and were subject to changes.

US Pressures mounts

Meanwhile, as US pressures were mounting on Chinese firms listed on US stock exchanges over the narratives of an abrupt escalation in tension between the world’s first- and second-largest economy, while the US Senate had also passed a bill on Wednesday (May 20th) which would likely to stall trading of the NYSE-listed Chinese firms unless they would follow the US SEC (Securities and Exchange Commission) audit and regulatory standards, adding that the company was closely monitoring the trade ties between Washington and Beijing, Baidu Inc.

co-founder and Chief Executive Robin Li said to the China’s state-controlled newspaper China Daily on Thursday (May 21st), “For a good company, there are many choices of destinations for listing, not limited to the U.S.