China's iQIYI hires banks for up to $300 million second listing in Hong Kong, sources say
The company plans to file its application in the third quarter, one of the sources said, adding that the listing could happen before the 2026 Lunar New Year in mid-February.
Both sources declined to be named because the information was private.
Nasdaq-listed iQIYI, controlled by Chinese internet giant Baidu Inc (9888.HK), opens new tab, declined to comment.
Spokespeople for Bank of America (BAC.N), opens new tab and JPMorgan (JPM.N), opens new tab declined to comment. Chinese investment bank CICC (China International Capital Corp) (601995.SS), opens new tab did not respond immediately to a request for comment.
A growing number of Chinese companies have sought to raise capital via initial public offerings or secondary listings in Hong Kong over the past year. That momentum has lifted Hong Kong above New York in terms of listing volumes this year.
The trend has been driven partly by concern over potential forced delistings of Chinese companies from U.S. exchanges since the trade war between the world's two largest economies started this year.
Two Republican lawmakers have urged the U.S. Securities and Exchange Commission to delist Chinese companies that they say have military links that put U.S. national security at risk, the Financial Times reported in May.
With a market value of about $2.2 billion, iQIYI is the second-largest player in China's video streaming market behind Tencent Video, owned by Chinese tech group Tencent Holdings (0700.HK), opens new tab.
Shares in iQIYI surged more than 20% at one point on Monday after China's State Administration of Radio, Film and Television said it would implement a series of measures to boost quality content creation.
However, iQIYI's shares remain about 30% below the level at which they were trading a year ago, having plunged by nearly 60% last year on declining revenue and profit in the face of difficulties in subscriber retention and advertising as well as foreign exchange losses.
Analysts expect the Beijing-based company to report an 11.2% decline in revenue to 6.6 billion yuan for the quarter to June 30, LSEG data shows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
7 minutes ago
- Reuters
Wall Street falls on Jackson Hole jitters
Aug 19 (Reuters) - U.S. stocks dipped on Tuesday as investors gear up for what Federal Reserve chair Jerome Powell will say about the path of interest rates at a key conference later in the week. The Nasdaq slid more than 1% to its lowest in over two weeks as megacaps Nvidia (NVDA.O), opens new tab and Microsoft (MSFT.O), opens new tab lost 3.37% and 1.22%, having rallied for much of the year. The key event this week is the Fed's annual symposium at Jackson Hole, Wyoming, from Aug. 21-23, where Powell's comments will be scrutinized for any clues on the central bank's outlook on the economy and monetary policy. "There's an anxiety about Powell's comments at Jackson Hole," said Ross Mayfield, investment strategist at Baird Private Wealth Management. "Some investors fear the Fed is going to be a bit behind the curve and higher interest rates have a big impact on growth stocks." Also on the policy front, remarks from Fed Vice Chair for Supervision Michelle Bowman are due later in the day. Bowman, who is under consideration for the central bank's top job when Chair Jerome Powell's term ends next year, has voiced support for at least three interest rate cuts this year, in line with President Donald Trump's calls for lower borrowing costs. Interest rate futures point to a total of two rate cuts this year worth 25 basis points each, with the first expected in September, according to data compiled by LSEG. At 01:45 p.m. the Dow Jones Industrial Average (.DJI), opens new tab fell 0.59 points, roughly flat, to 44,911.23, the S&P 500 (.SPX), opens new tab lost 34.25 points, or 0.53%, to 6,414.90 and the Nasdaq Composite (.IXIC), opens new tab lost 275.31 points, or 1.27%, to 21,354.46. Six of the 11 S&P 500 sectors edged up. Real estate (.SPLRCR), opens new tab led with a 1.4% rise, helped by better-than-expected housing data. On the other hand, technology (.SPLRCT), opens new tab and communications services (.SPLRCL), opens new tab lost over 1.5% and 1.2%, respectively. The blue-chip Dow briefly hit a record high on Tuesday, aided by a rise in Home Depot's shares after the retailer kept its annual forecasts intact. Home Depot (HD.N), opens new tab rose 3.35% despite missing quarterly results estimates, while rival home-improvement chain Lowe's (LOW.N), opens new tab gained 2%. Earnings from Lowe's and big-box retailers Walmart (WMT.N), opens new tab and Target (TGT.N), opens new tab later this week are now in focus as investors await more insight on the health of the American consumer. "Consumers are still not really spending at full speed ahead, they're a little bit cautious," said Peter Cardillo, chief market economist at Spartan Capital Securities. "They're waiting to see the full results of the tariffs impact on the upcoming holiday sales in a couple of months from now." Intel (INTC.O), opens new tab jumped 8.5% to hit its highest since February after the chipmaker got a $2 billion capital injection from Japan's SoftBank Group (9984.T), opens new tab. Palo Alto Networks (PANW.O), opens new tab surged 3.5% after the cybersecurity company forecast fiscal 2026 revenue and profit above estimates. Medtronic (MDT.N), opens new tab lost 3.5%. The company said it would add two new directors to its board after Elliott Investment Management took a large stake in the medical-device maker. Advancing issues outnumbered decliners by a 1.06-to-1 ratio on the NYSE. There were 168 new highs and 48 new lows on the NYSE. The S&P 500 posted 11 new 52-week highs and one new low while the Nasdaq Composite recorded 51 new highs and 65 new lows.
Reuters
an hour ago
- Reuters
S&P affirms 'AA+' credit rating for US, cites impact of tariff revenue
Aug 19 (Reuters) - S&P Global on Monday affirmed its "AA+" credit rating on the U.S., saying the revenue from President Donald Trump's tariffs will offset the fiscal hit from his massive tax-cut and spending bill. Trump signed the "One Big Beautiful Bill Act" into law in July after it was passed by the Republican-controlled Congress. The bill, which delivered new tax breaks, also made Trump's 2017 tax cuts permanent. "Amid the rise in effective tariff rates, we expect meaningful tariff revenue to generally offset weaker fiscal outcomes that might otherwise be associated with the recent fiscal legislation, which contains both cuts and increases in tax and spending," S&P said in a statement. "At this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation." The U.S. reported a $21 billion jump in customs duty collections from Trump's tariffs in July, but the government budget deficit still grew nearly 20% in the same month to $291 billion. Interest on the public debt also continued to grow, hitting $1.013 trillion in the first 10 months of the fiscal year, an increase of 6%, or $57 billion, over the prior-year period due to slightly higher interest rates and increased debt levels. Since returning to power in January this year, Trump has launched a global trade war with a range of tariffs that have targeted individual products and countries. The Republican president has set a baseline tariff of 10% on all imports to the U.S., as well as additional duties on some items and trading partners. S&P, which became the first ratings agency to cut the pristine U.S. government rating in 2011, said the outlook on the U.S. rating remains stable. The ratings agency said it expects the Federal Reserve, which Trump has criticized this year for not cutting interest rates, "to navigate the challenges of lowering domestic inflation and addressing financial market vulnerabilities." It projected the country's general government deficit to average 6.0% of GDP during the 2025-2028 period, down from 7.5% in 2024 and from an average 9.8% of GDP in 2020-2023. S&P said it could lower the rating over the next two to three years if already high deficits increase. "The ratings could also come under pressure if political developments weigh on the strength of American institutions and the effectiveness of long-term policymaking or independence of the Federal Reserve," it said. S&P, however, said it could raise the U.S. rating in the event of sustained economic growth and adjustments to the U.S. fiscal profile that would diminish recent increases in the country's debt burden. There was no reaction in markets on Tuesday to S&P's credit rating affirmation, which follows a U.S. sovereign credit downgrade by Moody's in May, when that ratings agency cut the triple-A U.S. rating by one notch, citing rising debt levels. The U.S. national debt load surged above a record $37 trillion last week. James Ragan, co-chief investment officer and director of investment management research at D.A. Davidson, said the S&P rating affirmation was an acknowledgment of the meaningful tariff revenue generated so far. "That's all good revenue (coming) in, but that's also a drag on the economy, so I think we don't know the impact of that going forward," he said.
The Herald Scotland
2 hours ago
- The Herald Scotland
India's Modi meets China's top diplomat as Asian powers rebuild ties
China's foreign ministry said the countries have entered a 'steady development track' and the countries should 'trust and support' each other. Mr Wang arrived in India on Monday and has met with foreign affairs minister Subrahmanyam Jaishankar as well as national security adviser Ajit Doval about the countries' disputed border in the Himalayan mountains. India's foreign ministry said Mr Wang's meeting with Mr Doval discussed 'de-escalation, delimitation and boundary affairs'. Narendra Modi and Chinese president Xi Jinping (Manish Swarup/AP) Relations plummeted in 2020 after security forces clashed along the border. The violence, the worst in decades, left 20 Indian soldiers and four Chinese soldiers dead, freezing high-level political engagements. 'The setbacks we experienced in the past few years were not in the interest of the people of our two countries. We are heartened to see the stability that is now restored in the borders,' Mr Wang said. Mr Modi emphasised the importance of maintaining peace and tranquillity on the border and reiterated India's commitment to a 'fair, reasonable and mutually acceptable resolution of the boundary question', his office said in a statement. The rebuilding of India-China ties coincides with friction between New Delhi and Washington after US president Donald Trump imposed steep tariffs on India, a long-time ally seen as a counterbalance against China's influence in Asia. India is part of the Quad security alliance with the US, along with Australia and Japan. The chill in relations after the deadly clash in 2020 between troops in the Ladakh region affected trade, diplomacy and air travel, as both sides deployed tens of thousands of security forces in border areas. Some progress has been made since then. Last year, India and China agreed to a pact on border patrols and withdrew additional forces along some border areas. Both countries continue to fortify their border by building roads and rail networks. In recent months, the countries have increased official visits and discussed easing some trade restrictions, movement of citizens and visas for businesspeople. In June, Beijing allowed pilgrims from India to visit holy sites in Tibet. Both sides are working to restore direct flights. Last week, the spokesman for India's foreign ministry, Randhir Jaiswal, said India and China were in discussions to restart trade through three points along their 2,167-mile border. 'Settling the boundary issue between the two countries requires political compromise at the highest political level,' said Manoj Joshi, a fellow at the Observer Research Foundation, a New Delhi-based think tank. He also served as a member of the advisory board for India's National Security Council. The thaw between Beijing and New Delhi began last October when Mr Modi and Chinese president Xi Jinping met at a summit of emerging economies in Russia. It was the first time the leaders had spoken in person since 2019. Mr Modi is set to meet Mr Xi when he travels to China late this month — his first visit in seven years — to attend the summit of the Shanghai Cooperation Organisation, a regional grouping formed by China, Russia and others to counter US influence in Asia. Earlier this year, Mr Xi called for India and China's relations to take the form of a 'dragon-elephant tango' — a dance between the emblematic animals of the countries. Last month, India's external affairs minister visited Beijing in his first trip to China since 2020.
