Baidu Stock Plunges $2.7 Billion as CEO Misses Xi Jinping's Key Meeting

 

Absence of Baidu’s Robin Li Raises Concerns Over Government Support

China’s tech sector experienced a major shake-up after Baidu’s stock plummeted by $2.7 billion in a single trading session. The decline came immediately after reports surfaced that Baidu’s CEO, Robin Li (Li Yanhong), was not invited to a high-profile symposium with President Xi Jinping, a meeting that featured several major tech industry leaders.

According to data from the Hong Kong Stock Exchange on February 18, Baidu’s market capitalization dropped from HK$270.8 billion to HK$252.0 billion—a sharp decline of 6.78% in one day, with intra-day losses exceeding 8%.

In stark contrast, Tencent, one of China’s leading tech giants, saw its market cap surge by HK$172.6 billion, climbing to HK$4.53 trillion. The company’s stock price soared to a three-year high, reflecting investor confidence. Similarly, Alibaba’s shares gained over 4% during the trading session before closing slightly lower, though the company has seen nearly a 50% increase in value since the beginning of the year.

Market analysts believe Baidu’s stock decline is closely linked to CEO Robin Li’s absence from Xi’s symposium. In China, exclusion from such meetings can signal weaker government backing, raising concerns about regulatory support and future business prospects.

Tech Leaders Gain Favor While Baidu Faces Challenges

The high-profile meeting was attended by key figures, including Alibaba’s Jack Ma and Tencent’s Pony Ma, reinforcing the perception that regulatory pressure on China’s tech sector is easing. Since 2021, Beijing has imposed strict controls on the tech industry, forcing companies like Tencent to divest assets and adjust business strategies to align with government directives.

Jack Ma’s participation was particularly noteworthy given his previous fallout with Chinese regulators. In 2020, Ma’s criticism of Beijing’s financial policies led to the suspension of Ant Group’s IPO and a record antitrust fine against Alibaba. His presence at Xi’s latest meeting suggests a shift in the government’s stance, possibly indicating an end to the intense regulatory crackdown.

Meanwhile, Tencent’s Pony Ma was seen sitting next to Liang Wenfeng, the founder of DeepSeek, further underscoring his close ties to China’s leadership. Bloomberg reported that Pony Ma’s personal wealth momentarily reclaimed the title of China’s richest individual as Tencent’s stock price surged.

Baidu’s struggles extend beyond missing the meeting. The company faces increasing competition from AI-powered search alternatives, raising concerns about the sustainability of its core business. Investors are wary that Baidu may fall behind in the race for AI dominance, especially as regulatory uncertainty lingers.

Government Signals Policy Shift Amid Economic Challenges

During the symposium, Xi Jinping emphasized the importance of private sector growth, stating that China would continue refining its socialist market economy while strengthening legal frameworks to support business development. The meeting’s participant list also reflected a shift in government priorities—from focusing on real estate firms, as seen in a similar 2018 meeting, to highlighting the role of high-tech enterprises like Tencent, Alibaba, CATL, Xiaomi, Huawei, and BYD.

This renewed engagement with tech giants is seen as part of Beijing’s broader strategy to stabilize the economy and attract foreign investment. With China facing slowing growth and geopolitical tensions, policymakers may be recalibrating their approach to ensure private enterprises play a more active role in driving innovation and economic expansion.

However, Baidu’s exclusion from the meeting raises questions about the company’s standing in the eyes of regulators. While Tencent and Alibaba appear to be regaining favor, Baidu’s absence suggests that its influence within the tech sector may be waning—a factor that investors will be closely monitoring in the months ahead.