Baidu Plans to Spin Off Kunlun Chip Unit for IPO This Year; Morningstar Estimates Valuation Up to HK$500 Billion
Miles Bennett
Baidu plans to spin off its chip division Kunlun Technology for a Hong Kong listing this year, with Morningstar valuing the unit at HK$400–500 billion — the clearest signal yet that Baidu is betting its future on AI, not search.
Where is Kunlun heading to list?
Baidu CFO He Haijian said the company is pursuing dual listings in Hong Kong and on Shanghai's STAR Market; STAR Market filing guidance began in May.
Analysts widely expect the Hong Kong IPO as early as Q3 2026.
This means → Baidu is not choosing one venue over the other — it wants both: international capital via Hong Kong, domestic valuation via STAR Market.
How did Morningstar arrive at the price tag?
Morningstar analysts set a valuation range of HK$400–500 billion (roughly US$51–64 billion).
Baidu has not disclosed specific pricing details; the figure is an independent third-party estimate.
In plain terms = at the top end, this single chip unit could be worth more than many listed Hong Kong tech companies in their entirety.
Why now?
Baidu's legacy search and advertising business continues to weaken, while AI-related revenue is growing fast; He Haijian expects that momentum to carry through the coming quarters.
Recent IPOs by Chinese AI firms have drawn strong investor demand, opening a favorable market window for Kunlun.
This means → Baidu needs a new narrative to re-rate its stock — carving out a high-growth AI chip business makes it far easier to price than leaving it buried inside a declining search company.
What does this mean for Baidu as a whole?
Market analysts believe a successful Kunlun IPO would help Baidu rebuild its standing as a tech giant in investors' eyes.
The spin-off logic: search-ad drag on group valuation → price the high-growth unit independently → force the market to re-rate Baidu overall.
In plain terms = Baidu's share price today mostly reflects "a search company in decline." Spinning off Kunlun is how it gets the market to see "an AI company on the rise."
Content is for reference only, not financial advice.