iQiyi plans $300m HK listing amidst US delisting risk

Talks with global banks have begun.

Chinese streaming giant iQiyi Inc. is seeking to raise $300m through a secondary listing in Hong Kong this year, according to a report by Bloomberg.

The move comes as U.S.-listed Chinese firms face renewed pressure from Washington and look to secure funding in more stable markets.

The Baidu-owned platform, often called the “Netflix of China,” has started talks with global banks to arrange the listing. Discussions are ongoing, and plans could still change. iQiyi declined to comment.

The company’s U.S. shares rose as much as 6% following the news but ended the day largely unchanged.

With over 400 million monthly active users, iQiyi competes with Tencent Video and Alibaba’s Youku for dominance in China’s online video market. It would join a growing list of Chinese firms turning to Hong Kong for listings, including CATL, as the city’s IPO market rebounds.

Hong Kong has reclaimed its position as the world’s second-largest market for share sales this year, driven by looser regulations and a surge of Chinese companies seeking alternatives to U.S. exchanges.

Tensions between the U.S. and China have resurfaced with Donald Trump back in office. His administration is revisiting enforcement of the Holding Foreign Companies Accountable Act, which allows the SEC to delist Chinese companies that fail to meet U.S. audit requirements for two consecutive years.

Although a 2022 agreement briefly eased concerns, the risk of delisting has returned. Analysts say companies like iQiyi are hedging that risk by pursuing listings in Hong Kong.

Alibaba and Baidu both completed secondary listings in Hong Kong before the pandemic. iQiyi appears to be following the same path.