Starting this Monday, mainland Chinese investors will be able to directly trade Baidu\u2019s A-class ordinary shares through the Shanghai and Shenzhen-Hong Kong Stock Connect schemes, following the company\u2019s inclusion in the eligible securities list.

The Shenzhen Stock Exchange announced the adjustment to the list of eligible securities under the Stock Connect program on September 7, confirming that Baidu has been added to the Shenzhen-Hong Kong Stock Connect. With this move, the tech giant's integration into both the Shanghai and Shenzhen-Hong Kong Stock Connect channels is now fully complete, allowing qualified mainland investors to buy and sell its shares through these cross-border mechanisms.

This inclusion marks another significant milestone in Baidu\u2019s capital market journey. On August 27, Baidu announced its voluntary conversion of its secondary listing status on the Hong Kong Stock Exchange to a primary listing. The switch took effect on September 1, making the company dual-primary listed on both the Hong Kong Exchange and Nasdaq. On September 4, Baidu was officially included in the Shanghai-Hong Kong Stock Connect.

The addition to the Stock Connect program represents a substantial step forward in broadening Baidu\u2019s appeal to mainland Chinese investors, and is expected to further diversify its investor base while enhancing share liquidity and overall market visibility.

Analysts believe this move could trigger strong capital inflows. Citi\u2019s research suggests that Baidu\u2019s inclusion in the Stock Connect could act as a key catalyst for drawing significant investment and purchase interest. Third-party forecasts indicate that net new southbound capital flow into Baidu could reach $6 billion, or approximately HK$47 billion, over the next two to four months.

Jefferies also commented on the development, noting that the inclusion will expand the participation of mainland investors and further refine Baidu\u2019s shareholder structure.

Looking ahead, market attention is now shifting to the potential initial public offering of Kunlun Chip, Baidu\u2019s semiconductor arm. Sources indicate that Baidu will not seek financing through share issuance, bond sales, or convertible bonds. The company holds roughly $40 billion in cash and total investments, with these investments already demonstrating a capacity for self-sustaining growth.

Financial reports show that revenue from Baidu\u2019s AI business has accounted for more than half of its overall business revenue for two consecutive quarters. Baidu founder Robin Li previously stated: "The sustained growth of our AI business further confirms that Baidu has transformed from an internet-centric company into an AI-first company, and it also strengthens our confidence in the long-term growth potential of the company."