(Yicai) Aug. 27 -- Shares of Baidu gained today after the Chinese artificial intelligence giant said it would convert its secondary listing in Hong Kong into a primary listing next month, a move expected to broaden its investor base and improve share liquidity.

Baidu [HK: 9888] closed 5.3 percent higher at HKD95.75 (USD12.20) in Hong Kong after surging as much as 6.8 percent intraday. Its Nasdaq-listed shares [NASDAQ: BIDU] were 4.3 percent higher in pre-market trading at 5.08 a.m. New York time after closing almost flat yesterday.

The voluntary conversion will take effect on Sept. 1, after which Baidu will be primarily listed on both the Hong Kong Stock Exchange and the Nasdaq Global Select Market, the Beijing-based tech firm announced yesterday.

The conversion will not involve the issuance of new shares or any fundraising activities. Baidu obtained all necessary shareholder approvals for the conversion at an extraordinary general meeting yesterday.

Baidu is also preparing to join the southbound Stock Connect program as soon as possible after the conversion, allowing mainland Chinese investors to trade its Hong Kong-listed shares through the Shanghai-Hong Kong and Shenzhen-Hong Kong links.

The dual-primary listing will broaden Baidu's investor base and improve share liquidity, Chief Financial Officer Haijian He said, adding that the move also marks an important milestone as the company's artificial intelligence strategy enters a harvesting stage.

Market analysts said that after the conversion, Baidu will become the first dual-primary listed company in Hong Kong and on Nasdaq with a full-stack AI presence. Based on current rules and assessment periods, the company could become eligible for the Stock Connect program as early as Sept. 7.

Baidu is one of the few companies worldwide with a full-stack AI layout, offering products across chips, cloud infrastructure, models, and applications. AI-related revenue has accounted for more than half of its general business revenue for two consecutive quarters, according to the company's financial reports.

Editor: Emmi Laine