Chinese Concept Stocks | Baidu Proposes $2 Billion Convertible Bonds Amidst Active Financing Moves

On March 7th Eastern Time (Friday), the three major U.S. stock indices collectively closed higher. The S&P 500 index rose by 0.55%, closing at 5,770.20 points; the Dow Jones index increased by 0.52%, closing at 42,801.72 points; the Nasdaq index grew by 0.70%, closing at 18,196.22 points.

On March 6th, the Nasdaq Golden Dragon China Index fell by 0.77%.

Among popular Chinese concept stocks, Bilibili rose by 8.17%, XPeng Motors increased by 6.19%, NIO grew by 5.31%, Baidu rose by 1.51%, NetEase increased by 0.78%, TSMC grew by 0.72%, Alibaba rose by 0.49%, Pinduoduo increased by 0.08%, and JD.com fell by 3.71%.

The companies with consecutive gains in Chinese stocks include Lianzhang Portal with a recent increase of 22.54% over 7 consecutive days, resulting in a cumulative increase of 201.00% during the period; Tuniu with a recent rise of 2.68% over 7 consecutive days, resulting in a cumulative increase of 15.00%; Eureka Acquisition with a recent increase of 0.20% over 6 consecutive days, resulting in a cumulative increase of 0.23%; ECARX Technologies with a recent rise of 2.56% over 5 consecutive days, resulting in a cumulative increase of 29.63%; Wangban Technology with a recent increase of 25.09% over 5 consecutive days, resulting in a cumulative increase of 27.74%; and Yinlifu with a recent rise of 1.65% over 5 consecutive days, resulting in a cumulative increase of 9.47%.

The companies with consecutive declines in Chinese stocks include Youxin Technology with a recent decrease of 8.04% over 9 consecutive days, resulting in a cumulative decline of 30.42%; Lotus Technology with a recent decrease of 8.19% over 7 consecutive days, resulting in a cumulative decline of 31.72%; Next Technology with a recent decline of 1.41% over 7 consecutive days, resulting in a cumulative decline of 62.52%; Tongcengtongmei with a recent decrease of 6.14% over 7 consecutive days, resulting in a cumulative decline of 28.61%; Aurora with a recent decline of 3.90% over 6 consecutive days, resulting in a cumulative decline of 23.51%; and Yankong Technology with a recent decrease of 5.29% over 6 consecutive days, resulting in a cumulative decline of 17.69%.

Mizuho Securities raised the JD ADR target price from $43 to $50.

On March 7th, Baidu Group announced its plan to issue up to $2 billion in 2032 maturity exchangeable bonds. These bonds are to be issued to non-U.S. persons in offshore transactions. The net proceeds from the issuance will be used for repaying certain existing debts, paying interest, and general corporate purposes. The exchange rate and other terms have not been finalized and will be determined at pricing. The proposed bonds will be referenced to the ordinary shares of Trip.com Group listed on the Hong Kong Stock Exchange. Under certain conditions, bondholders may exchange the bonds for cash or Trip.com shares. The company may choose to deliver Trip.com shares instead of cash or a combination of cash and shares.

Just one day earlier, on March 6th, Baidu announced the completion of pricing for its first offshore RMB bonds since 2021, with a total principal amount of RMB 10 billion, including RMB 7.5 billion in 2.70% notes due in 2030 and RMB 2.5 billion in 3.00% notes due in 2035.

Baidu Group announced its intention to issue up to $2 billion in 2032 maturity convertible bonds under Regulation S of the U.S. Securities Act of 1933, as amended. The bonds are to be issued to non-U.S. persons in offshore transactions, subject to market conditions and other factors.

Weiguang Liu, Senior Vice President of Alibaba Cloud Intelligence Group and President of the Public Cloud Business Unit, stated that from its inception, Alibaba Cloud has positioned itself as a global company. After more than a decade of technological advancement and commercial practice, it has become a leading international cloud provider. Starting this year, Alibaba Cloud will invest unprecedented resources to further expand into overseas markets. In recent years, Alibaba Cloud has seen rapid growth in the international market, with its market size growing over 20 times in five years. Alibaba Cloud's services cover 29 public cloud regions globally, 87 public cloud availability zones, and over 3,200 edge nodes, enabling a single global cloud to deliver 394 cloud and AI products and 59 technology services through a global network. Alibaba Cloud holds more than 150 global compliance certifications, making it one of the most comprehensively compliant cloud providers in Asia, capable of providing cloud environments that meet internationally recognized standards.

On March 7th at noon, Ele.me announced the launch of an AI algorithm competition, open to all university students nationwide. According to the official information, this competition focuses on three main areas: elderly meal assistance, rider community service, and smart marketing, all with clear real-world application characteristics. Ele.me stated that this year, the platform will focus on AI intelligence, continuously exploring the use of cutting-edge technology to drive innovation in specific applications, improving the efficiency and experience of the life services industry with intelligent technology. Additionally, the algorithms and designs from this competition will be applied in reality, allowing more people to benefit directly from the convenience brought by AI.

In February of this year, JD.com announced the launch of its food delivery business. According to the Qichacha app, Beijing JD 360 E-commerce Co., Ltd. recently applied to register the "JD Waimai" trademark, classified under catering and accommodation, with the current status of the application being pending. Previously, another company attempted to register the JD Waimai trademark, which was ultimately rejected and invalidated.