Why Range Intelligent Should Follow Baidu's Lead in Hong Kong Secondary Listings Amid Shifting Market Dynamics

The global tech sector is undergoing a seismic shift in valuation paradigms, with Hong Kong emerging as the preeminent hub for tech listings. As AI and electric vehicle (EV) innovations drive capital flows, companies like Range Intelligent face a pivotal decision: capitalize on Hong Kong's ecosystem or risk being sidelined in an increasingly fragmented market. By following Baidu's 2021 secondary listing strategy, Range can access superior valuations, mitigate U.S. regulatory risks, and tap into a global investor pool primed for tech growth. Let's dissect the data and dynamics behind this imperative.

Valuation Disparities: Hong Kong's Tech Premium Over A-Shares

Hong Kong's tech sector is outperforming its mainland counterpart in valuation multiples and capital-raising capacity. Consider the stark contrast in IPO proceeds:

In the first half of 2025, Hong Kong's tech IPOs raised HK$108.7 billion, a 711% surge from 2024, while A-shares managed only a 14% increase to RMB37.1 billion. This reflects a structural preference for Hong Kong among global investors, particularly for firms in AI, semiconductors, and EVs.

The Technology Enterprises Channel (TECH), launched in May 2025, has accelerated this trend. By streamlining listings for AI and biotech firms and offering fast-track reviews (65 days for companies with >HK$10B valuations), Hong Kong is now the go-to venue for “hard tech” innovators. In contrast, A-shares remain constrained by stricter disclosure rules and lower foreign ownership (4% vs. Hong Kong's global investor base).

For Range Intelligent, a company developing AI-driven EV batteries, the valuation gap is critical. Hong Kong's sector-specific premiums—driven by demand for EV and AI stocks—could elevate its valuation by 20–30% compared to A-share levels.

Regulatory Safe Havens: Avoiding U.S. Headwinds

The U.S. regulatory environment has become a minefield for Chinese tech firms. The Holding Foreign Companies Accountable Act (HFCAA) and Nasdaq's stricter listing standards have caused Chinese IPOs in the U.S. to plummet by 62% in 2025. Meanwhile, Hong Kong's alignment with China's “self-reliance” agenda and its geopolitical neutrality make it a safer haven.

Baidu's 2021 Hong Kong listing exemplifies this strategy. By accessing dual listings (A+H), it avoided delisting threats while boosting its valuation by 15% through global investor interest. Range Intelligent, similarly, could insulate itself from U.S. scrutiny while capitalizing on China's EV boom.

Capital Flow Trends: The Window for Action is Narrowing

Hong Kong's ecosystem is now a magnet for global capital, with ESG integration and AI-focused funds driving demand. The Hang Seng Tech Index—up 18% year-to-date—reflects this enthusiasm, while A-share tech stocks trade at historically low price-to-book ratios.

The narrowing valuation gap between Hong Kong and A-shares is a catalyst. As Hong Kong's reforms solidify, the premium for listed firms is stabilizing. For Range, delaying a Hong Kong listing risks missing the window to lock in favorable terms.

Investment Implications: Act Before the Tide Turns

Investors should monitor two key catalysts:
1. Range Intelligent's Listing Announcement: A Hong Kong secondary listing would likely trigger a rerating, as seen with Baidu and Xiaomi.
2. Valuation Convergence: As more A-share firms dual-list, Hong Kong's premium could shrink, reducing upside for late movers.

Recommendation:
- Buy the rumor, own the news: Accumulate Range shares ahead of an announced listing.
- Watch for A+H momentum: The success of dual-listed peers like CATL (which raised HK$13.8B in 2025) signals a trend.

Conclusion

The writing is on the wall: Hong Kong's tech ecosystem is now the gold standard for capital-raising and valuation. For Range Intelligent, the choice is clear—follow Baidu's path to global capital, or risk being left in a stagnant A-share market. The window is open, but it won't stay that way forever.

Act now—or risk being overtaken by the next wave.