HK Stock Market Move | BIDU-SW (09888) opens more than 3% higher, the company says it is assessing the listing of Kunlun core through separate listing.

BIDU-SW(09888) opened more than 3% higher, and as of press time, rose 3.29% to HKD 125.6, with a trading volume of HKD 200 million. On the news front, on the evening of December 7th, Baidu Group announced that the company had noticed media reports on December 5th, 2025, stating that the company plans to spin off its non-wholly owned subsidiary Kunlun Core (Beijing) Technology Co., Ltd. for an independent listing. The company clarified that it is currently evaluating the proposed spin-off and listing. If the proposed spin-off and listing proceeds, it will need to go through the relevant regulatory approval process, and the company does not guarantee that the proposed spin-off and listing will proceed. Morgan Stanley previously believed that Baidu's investment narrative is undergoing a fundamental shift: the company is transitioning from a traditional search advertising company to an AI infrastructure provider, with Kunlun chips sales and GPU computing demand expected to drive revenue growth significantly. Morgan Stanley expects Baidu's Kunlun chip revenue to soar from approximately RMB 1.3 billion in 2025 to RMB 8.3 billion in 2026, a six-fold increase.