HONG KONG, iQiyi Inc, often referred to as the “Netflix of China,” is looking to raise around US$300 million through a planned listing in Hong Kong later this year, potentially becoming the latest US-listed Chinese firm to court investors closer to home.
The Baidu-owned streaming giant has reportedly started early discussions with global investment banks for a secondary listing in the city, according to sources familiar with the matter who requested anonymity due to the private nature of the deal.
Following the news, iQiyi’s shares in the US briefly rose by as much as 6% before closing flat in New York trading.
iQiyi’s platform features a wide array of content, ranging from popular Chinese historical dramas to major Hollywood blockbusters. It competes directly with other major players like Tencent Holdings and Alibaba Group to maintain its position among China’s leading video-streaming services, boasting over 400 million monthly active users.
The company now joins the likes of battery maker Contemporary Amperex Technology Co Ltd (CATL) in exploring a dual listing in Hong Kong.
While discussions are still at a preliminary stage and the deal remains fluid, iQiyi has not issued an official comment on the matter, according to Bloomberg News.
If the listing proceeds, iQiyi will be part of a growing wave of Chinese companies fueling a resurgence in Hong Kong’s capital markets. These listings have helped restore the city’s status as the second-largest IPO market globally, a milestone not reached since 2012, following years of decline due to the COVID-19 pandemic. Loosened regulatory policies have also played a key role in this revival.
Mainland Chinese firms, particularly those already listed on domestic exchanges, have led this IPO rebound.
For US-listed Chinese companies like iQiyi, the potential re-election of Donald Trump has reignited fears of delisting from American exchanges, as his administration has shown renewed interest in enforcing the Holding Foreign Companies Accountable Act (HFCAA) — a law passed in 2020 allowing the SEC to delist foreign companies if audit inspections are denied for two consecutive years.
Tensions over auditing standards had initially escalated during Trump’s first term but were largely defused in 2022, when US regulators gained sufficient access to Chinese audit records.
Nonetheless, with geopolitical uncertainties lingering, market watchers have speculated that firms such as iQiyi and PDD Holdings might opt for listings in more favourable jurisdictions.
Before the pandemic, tech giants Alibaba and Baidu had already paved the way with successful secondary listings in Hong Kong following their initial IPOs in the US.
