Baidu's Hong Kong-listed shares tumbled on Monday, as investors reacted to the absence of the company's founder, Robin Li, from a high-profile meeting between President Xi Jinping and China's top corporate leaders.
Xi convened the rare symposium in Beijing, attended by business magnates such as Alibaba’s Jack Ma and Huawei’s Ren Zhengfei, BYD Chief Executive Officer (CEO) Wang Chuanfu, and Xiaomi CEO Lei Jun.
However, according to multiple sources, Li was not present, sparking speculation about Baidu's position in China’s technology landscape.
Investor sentiment was rattled by Li’s absence, given that the presence of senior executives at such meetings is closely monitored for indications of corporate influence and government backing.
Baidu’s stock initially plunged 8.8% before paring losses to close down 6.9%, making it the biggest decliner on both the Hang Seng Index and the Hang Seng Tech Index.
The symposium was widely viewed as a government effort to reassure China’s private sector following years of regulatory scrutiny.
Xi’s engagement with business leaders highlights China's renewed emphasis on private-sector innovation, particularly in the face of United States restrictions on advanced technologies.
Despite regulatory headwinds, Baidu has intensified its focus on artificial intelligence to diversify beyond its core search engine business.
The company was among the first in China to release a ChatGPT-style chatbot, launching Ernie 4.0 in 2023.
At the time of writing, Baidu Inc (HKEX: 9888) stock was trading at HK$89.85, down 6.9% from Friday's close of $96.55. The stock reached a day low of $88.10 and a day high of $97.15. Baidu's market cap stands at HK$250.56 billion (A$50.63 billion).
