China’s search tech giant Baidu is considering delisting from the Nasdaq exchange as it deems its stock to be undervalued, according to a Reuters report Thursday.
The report says that the Chinese internet company is contemplating “moving to an exchange closer to home” in an attempt to “boost its valuation amid rising tension between the United States and China over investments.”
Baidu is reaching out to some trusted advisers to see how it could best be done if it were to proceed, including looking at issues around funding and any regulatory reaction, the sources told Reuters.
The discussions are at an early stage and are subject to change, said the sources, who spoke on condition of anonymity because the matter is not public.
US Senate recently passed a bill that could bar some Chinese companies from listing their shares in the U.S. and that aimed to apply stricter auditing rules to Chinese companies.
The move is seen as an escalation of a long-running dispute between Washington and Beijing about giving US regulators access to Chinese audits.
The company’s U.S.-listed shares have declined 17.2% over the past three months. Its shares have fallen more than 60 percent since their peak in May 2018.
Edited by staff