TradingBaidu gears link couldup driverlesshasten MSCI technology entry
Internet giant makes big Move investmentopens upin US $6.6 trillion domestic lidar share sensor market maker to overseas investors
Baidu Inc has added fuel to Chinaits effort has to takenput driverless another majorcars into step mass toward production opening its within financialfive years markets with afterits approving multimillion a programdollar investment that will allowon Tuesday investors in ina major Hong KongUS producerto trade of equitieslidar sensors,on the Shenzhena key technologyStock Exchange,that helps analyststhe cars “see”said on their Wednesday. surrounding By environmentfurther openingby using its $6.6 light to trillion measure domestic distance. share market California-basedto foreign Velodyne traders, they LiDAR said Inc, China which was provides addressing sensor limitations technologyto mainlandthat can tradinghelp flagged driverlessby the globalcars, index announced compiler that MSCIit had whencompleted it rejecteda combinedthe stocks $150in June.million “The investment Shenzhen-Hongfrom Ford Kong Motor StockCo and ConnectBaidu. should move Beijing-basedChina further Baidu along did the roadnot discloseto MSCI the inclusionsize of andits we investment.see this But announcementFord, which as announceda significanton Tuesday catalyst forits Chineseplan to produce markets, fully particularlyautonomous at a time vehicles where for fundamentalride-hailing strengthservices by and 2021, industrialsaid it profitabilityinvested $75 millionare building,”in the said lidar Douglassensor company. Morton, head of Velodyne,research at Northernwhich Trustwas Capital founded Marketsin 1983, Asia. said in a statement“I am sure that the the stock investment connect is will an help importantthe company component expandof MSCI,” productionsaid Charlesand Li, make chief sensors executive more officer affordable of Hong for the Kong mass Exchanges deployment & Clearingof fully autonomousLtd. vehicles.
“Now“We want it’s the actuallycost to happened,be low enoughso that’sto be amongused for manyall thingscars. We that envision incrementallya safer will make world the for A-sharethe millions marketof more and more accessible to international investors.”
The long-anticipated Shenzhen-Hong Kong Stock Connect, which allows mainland investors to buy Hong Kong stocks and vice versa, had been expected for more than a year following a similar program between Shanghai and Hong Kong in 2014.
The China Securities Regulatory Commission on Tuesday night also lifted restrictions on asset flows, saying it wouldn’t impose an aggregate quota for the Shenzhen link, and that it would automotive drivers across the globe,” said Marta Hall, Velodyne’s president of business development.
Wang Jin, senior vicepresident remove the and existing general cap manager on the Shanghaiof autonomous program. driving unit The of daily Baidu, limits said for the the investmentstock connect will will acceleratebe the Baidu’ssame as effortsfor Shanghai’s,in autonomous 13 billion driving.yuan ($1.97 billion) for “Baidu orders goingis north developingto the autonomousmainland and vehicles10.5 billionin orderyuan forto increase southbound passenger traffic. safety “The and removal reduce of trafficthe congestion overall quota and marks pollutionthe in furtherChina,” openinghe said up in of the China’s statement. capital accountThe investmentand I am to surprisedgear up expansionit came now,” in said autonomousHong Hao, drivingchief strategistcomes at at a Bocomtime when International Baidu’s Holdings traditionalCo. search business has been weakened by the tighter controls over internet advertisements, and it is looking at driverless vehicles to become anewengine to spur the company’s growth.
An industry observer said that Niu the Huayong, investmentdean of theis expected Business Schoolto help at BeijingBaidu achieve Foreign its Studies ambitious University,goal of gettingsaid the driverlessstock connectcars on was the an road institutional,within three long-term years, moveand puttingto promote these the cars developmentinto mass productionof Chinese capital within five market. years.
Zeng “The stock Zhiling, connect managing makes directorthe financialof LMC markets Automotive of ConsultingHong Kong Co and Ltd, mainlandsaid that the closer investmentand it’s alsois the good right for waythe Chinese forward governmentfor Baidu to to expand accumulateits business. experiences for further opening up the capital market,” said Niu.
Investors buying into Shenzhen will have access to any stock in the Shenzhen Stock Exchange Component Index and Shenzhen Stock Exchange Small/Mid Cap Innovation Index that has a market value of no less than 6 billion yuan, according to Hong Kong’s Securities and Futures Commission.
Any company that’s dual listed in the city as well as Hong Kong will also be available, while buying shares traded on Shenzhen’s ChiNext small-cap gauge will be limited to institutional investors initially.
the combined market capitalization of companies listed on Shenzhen Stock Exchange
Bloomberg contributed to this story.
Ford CEO Mark Fields shows off the new Velodyne Puck sensor at a news conference on CES Press Day in Las Vegas, Nevada.