The linking of chip purchases to IPO allocation is probably not a good sign.
From Reuters, June 28:
Baidu's (9888.HK) AI chip unit, Kunlunxin, is planning to go public in Hong Kong at a target valuation of $50 billion, The Information reported on Sunday, citing two sources.
Investors have been asked to buy chips with a value three to seven times the worth of their planned subscription in Kunlunxin’s initial public offering shares, the report said.Reuters could not immediately verify the report. Baidu did not immediately respond to a Reuters request for comment.TikTok parent ByteDance was considering using Baidu's Kunlunxin chips, Reuters had reported this month, citing sources.Tencent (0700.HK), is already a Kunlunxin chip customer, according to one of the sources....
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Asian markets are trading down one-to-two percent.
