iQIYI Inc. Surges 23.6% on Hong Kong Listing Plans

iQIYI, Inc. (NASDAQ:IQ) share prices increased by 23.62% week-on-week due to plans for a secondary public listing in Hong Kong, which could raise up to $300 million in fresh funds. The company has tapped Bank of America, JPMorgan, and China International Capital Corp. to work on the listing, scheduled for February 2026. The listing comes amid concerns over Chinese companies being delisted from US stock exchanges.

Chinese video streaming platform iQIYI Inc. (NASDAQ:IQ) has announced plans for a secondary public listing in Hong Kong, which could raise up to $300 million in fresh funds. The company has hired Bank of America, JPMorgan, and China International Capital Corp. (CICC) to work on the listing, scheduled for February 2026 [1].

The move comes amid growing concerns over potential forced delistings of Chinese companies from U.S. exchanges due to the ongoing trade war between the U.S. and China. This trend has driven a number of Chinese companies to seek capital via initial public offerings (IPOs) or secondary listings in Hong Kong [2].

iQIYI, controlled by Chinese internet giant Baidu Inc., has seen its share prices increase by 23.62% week-on-week following the announcement of its Hong Kong listing plans. The company plans to file its application in the third quarter of 2025, with the listing expected to happen before the 2026 Lunar New Year in mid-February [1].

The company's latest earnings report for the second quarter of 2025 showed a larger-than-expected loss, with earnings per share (EPS) of -0.14 compared to a forecast of -0.03. This significant miss led to a 4.42% drop in the stock price during pre-market trading, reflecting investor disappointment [3].

iQIYI's revenue for the second quarter of 2025 was 6.63 billion RMB, slightly below the expected 6.65 billion RMB. The company continues to face challenges in subscriber retention and advertising, as well as foreign exchange losses [3].

Despite these challenges, iQIYI remains optimistic about its future prospects. The company plans to focus on AI-powered entertainment experiences and expand its micro drama production. It is also exploring new monetization strategies and aims to continue its global expansion, particularly in Southeast Asia, North America, Japan/Korea, and the Middle East/North Africa [3].

References:
[1] Wu, Kane, and Julie Zhu. "Chinese video streaming platform iQIYI hires banks to work on $300 million Hong Kong listing." Reuters, 19 Aug. 2025, https://www.reuters.com/business/media-telecom/chinas-iqiyi-hires-banks-up-300-million-second-listing-hong-kong-sources-say-2025-08-19/.
[2] Wu, Kane, and Julie Zhu. "iQIYI plans to file Hong Kong listing application in the third quarter." Reuters, 19 Aug. 2025, https://ca.news.yahoo.com/chinas-iqiyi-taps-banks-300-101343864.html.
[3] InvestingPro. "iQIYI Inc. (IQ) Q2 2025: Earnings Call Transcript." InvestingPro, 19 Aug. 2025, https://www.investing.com/news/transcripts/earnings-call-transcript-iqiyi-q2-2025-earnings-miss-and-stock-dip-93CH-4202258.