iQiyi hopes that it will be listed on the strategic emerging board of the Shanghai Stock Exchange as soon as April next year

On the night of July 1, the Shanghai Securities News "Decision Reference" released news stating that Shanghai has selected three Internet companies and one state-owned enterprise-Ant Financial, Dianping, iQiyi and China Commercial Aircraft-as the first batch of listed companies on the strategic emerging board of the Shanghai Stock Exchange, and established a demonstration effect through these four high-quality companies.

Iqiyi, one of the "three giants" in the domestic video field, has announced that it will be listed in China.

On the night of July 1, the Shanghai Securities News "Decision Reference" released news stating that Shanghai has selected three Internet companies and one state-owned enterprise-Ant Financial, Dianping, iQiyi and China Commercial Aircraft-as the first batch of listed companies on the strategic emerging board of the Shanghai Stock Exchange, and established a demonstration effect through these four high-quality companies.

From the perspective of Entertainment Capital, if iQiyi can be listed in China, it is very likely to replicate Stormwind's "madness" in A-shares and raise a large amount of funds through A-shares. The competitive landscape of video Jianghu may even be rewritten.

1. Is the news that iQiyi is listed in China?

The "Decision Reference" of the Shanghai Stock Exchange is an electronic product launched by the director of Xinhua Agency and the Shanghai Securities News is almost the authoritative voice of the China Securities Regulatory Commission in the financial industry.

On the morning of July 2, Entertainment Capital contacted the iQiyi official, and the other party said that it would not comment on the matter.

According to reports from Tencent Technology, iQiyi has given up overseas listing, dismantled the VIE structure, and turned to preparing for domestic listing. Some people in the investment industry pointed out that Baidu CEO Robin Li has long revealed the idea of returning to A-shares. However, since Baidu's market value exceeds US$70 billion, it is difficult for Baidu to find such a large-scale amount of funds to take over, and it is difficult for Baidu to return in a short period of time as a whole.

"The safest solution for Baidu is that Baidu's main body is still in the U.S. capital market, but it splits some of its core assets and packages them into the A-share market. Iqiyi is a high-quality asset of Baidu and a compromise choice for Baidu."

Previously, Entertainment Capital had asked Gong Yu, CEO of iQiyi, on many occasions about the listing plan. Gong Yu's answer was: it depends on the market environment and iQiyi's own listing conditions.

In Gong Yu's view, iQiyi, Youku Tudou, and Tencent Video have gradually formed the "three giants". Especially on the mobile side, they have left other rivals far behind. In the future, the concentration of the video industry will be further enhanced and profits will be profitable. It is not impossible.

During the Shanghai Film Festival, iQiyi also released the latest data on its membership payment business. iQiyi said that the number of members has exceeded 5 million, which will generate hundreds of millions of yuan in membership payment revenue in the coming year, which will also increase iQiyi's profits. possibility.

In terms of market environment, the domestic capital market has "opened its arms" to Internet companies, and more and more Chinese stocks have dismantled the VIE structure and returned. The emerging board of the Shanghai Stock Exchange, which is still in the process of "nurturing", needs some large-scale "platforms" for high-quality companies.

Previously, Jin Xingming, deputy secretary-general of the Shanghai City Government, once stated that the establishment of a strategic emerging board by the Shanghai Stock Exchange has been approved by the State Council. It is reported that the emerging version of the strategy will be officially established around April next year.

The "strategic emerging industries board" can be represented by the strategic emerging industries board. The strategic emerging industry board is positioned at relatively large-scale companies that have passed the growth period and are relatively mature. It forms a connection with the main board and the startup board (the ChiNext), and also has moderate intersections.

2. Robin Li once flirted with the China Securities Regulatory Commission

about listing. There are two ready-made cases in front of iQiyi-Youku Tudou and Storm Technology. The former are both the "leaders" in the domestic video field and are listed in the United States, but they are not favored by investors and their share price is seriously undervalued; the latter is an insignificant player in the video industry, but has pulled out 39 daily limits in A-shares, setting a record.

It is clear at a glance which of the two capital markets, China and the United States, is more suitable for iQiyi.

The more important factor is-Robin Li.

In April this year, Robin Li delivered a speech at the China Securities Regulatory Commission. In a nearly 40-minute speech, Robin Li once stated: "I hope Baidu will have the opportunity to return to China to list, or benefit China investors in some other form."

In his speech, he said that this year is the 10th year of Baidu's listing. Baidu has grown from a company with a market value of US$800 million when it went public to a market value of nearly US$80 billion now, earning investors nearly 100 times returns in 10 years.

"I have expressed on various occasions that I very much hope that Baidu will have the opportunity to come back and list in China, or in some other form to benefit China investors. Because our market is in China, users are in China, and customers are also in China, we also hope that our shareholders and investors can also be in China." Li Yanhong said.

Editor: yvonne