** Hong Kong shares of Chinese internet search giant Baidu Inc 9888.HK jump 7.8% to HK$124.8, their highest level since November 13, and on course for a second straight session of gains

** Stock set for the biggest one-day pct gain since September 17; top pct gainer in the Hang Seng Tech Index .HSTECH and Hang Seng Automobile Index .HSAMI, which are up 0.2% and 0.5%, respectively

** Kunlunxin, the AI chip unit of Baidu, is planning an initial public offering in Hong Kong, having recently completed a fundraising that valued it at 21 billion yuan ($2.97 billion), three people familiar with the matter told Reuters

** Kunlunxin joins a wave of Chinese chip companies planning public listings and follows listing of graphics processing units maker Moore Threads 688795.SS, which debuted on the Shanghai Stock Exchange on Friday at more than five times its IPO price

** YTD, Baidu's Hong Kong stock up 47.2%, U.S.-listed shares BIDU.N up 40.8%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))