Baidu CEO Robin Li. Photo credit: Baidu

Chinese search engine giant Baidu is considering de-listing from the U.S. Nasdaq stock exchange and moving to an exchange closer to its homeland of China, according to a report from Reuters. Reuters reports Baidu is considering the move in order to boost its valuation amid apparent increasing tension between American and Chinese entities and regulatory bodies over investments. According to Reuters‘ report, Baidu has begun reaching out to some trusted advisers to judge the feasibility of such a move.

As of Wednesday’s market close, Baidu’s market capitalization stood at around $29 billion. The company’s market value has fallen more than 60% from its peak sometime in 2018. At its current valuation, it seems understandable that Baidu, which reported revenues of $15.4 billion last year, feels it’s undervalued. The company’s CEO, Robin Li, has also previously stated that he was paying close attention to increased scrutiny of Chinese companies listed in the US.

Baidu’s reported delisting consideration comes on the heels of the United States Senate passing a bill that would require foreign firms listing in the U.S. to follow the country’s standards for audits and financial reports and also mandatorily disclose whether they are owned or controlled by a foreign government. The condition, although not yet finally approved (and may not be), particularly the case of foreign companies adopting U.S. standards for audits and financial reports, could lead some foreign firms, including Chinese ones, to delist from stock exchanges in the US.