According to a report from The Information, Baidu (HKEX: 09988) subsidiary Kunlun Chip is planning a Hong Kong listing, targeting a valuation of approximately $50 billion (around RMB 339.9 billion).

The report also states that Kunlun Chip is inviting IPO investors to purchase its semiconductor products. Tencent has already become a customer, and ByteDance is also considering adopting its AI chips.

Currently, Kunlun Chip's P800 model has completed large-scale validation. Since 2025, it has delivered several ten-thousand-card clusters and has completed training for the significant Wenxin 5.1 version on fully domestic clusters.

The report cites individuals involved in the roadshow, stating that during the Hong Kong IPO preparations, Kunlun Chip is prioritizing investors who commit to buying its chips.

It is claimed that some institutions participating in the IPO share subscription are being required to purchase Kunlun chips worth three to seven times their subscription amount.

Influenced by this news, on the morning of June 29th, Baidu's Hong Kong shares surged as much as 8.70% during the session.

By the midday close, the stock was quoted at HK$105.8, up 7.14%, giving the company a total market capitalization of HK$287.99 billion (approximately RMB 249.6 billion). This valuation is nearly 30% lower than the target valuation for Kunlun Chip's IPO.