Baidu weighs leaving the Nasdaq -sources

Baidu weighs leaving the Nasdaq -sources

Chinese search engine giant Baidu is considering delisting from the Nasdaq and moving to an exchange closer to home to boost its valuation amid rising tension between the United States and China over investments, three sources said.

Fred Katayama reports.

One of the earliest Chinese companies to list on the Nasdaq is considering leaving the exchange.

Sources told Reuters the search engine giant Baidu is considering delisting and moving its stock to an exchange closer to home.

They say the company seeks to boost its valuation amid rising tensions between the U.S. and China.

Baidu declined to comment.

But the company pointed to comments its CEO Robin Li made to the China Daily on Thursday - saying Baidu was paying close attention to tighter U.S. scrutiny facing listed Chinese companies.

Li said good companies have many destination choices for listing, not just the U.S..

Baidu and other Chinese companies Ctrip and NetEase have had preliminary talks with Hong Kong Exchanges and Clearing about a possible secondary listing, sources told Reuters earlier this year.

Alibaba, which has by far a larger valuation, already trades in Hong Kong and New York.

The sources said Baidu, which sports a market capitalization of roughly $30 billion, believes it's undervalued on the Nasdaq.

Its shares have fallen a lot more since May of last year than other Chinese-listed companies on that exchange.

Baidu's latest move comes as Chinese companies face increased U.S. pressure.

On Wednesday, the Senate passed a bill that could stop some Chinese companies from listing on U.S. exchanges unless they follow U.S. audit and regulatory standards.