Baidu approves US$5 billion share buyback, first dividend

BAIDU announced a three-year stock buyback programme of as much as US$5 billion and plans to issue its first dividend in 2026, establishing a major shareholder return plan.

The Chinese artificial intelligence (AI) and search specialist has authorised a buyback programme that will cover the period to the end of 2028, it said in a filing on Thursday (Feb 5). Beijing-based Baidu expects to declare the first payment of a dividend this year, which may include regular or special distributions.

The Internet company, one of China’s earliest to embrace AI, joins larger peers Tencent Holdings and Alibaba Group Holding in enhancing shareholder returns. That trio, long established as China’s incumbents in key online sectors, is now part of a land grab in Chinese generative AI to secure customers and users ahead of the Chinese New Year. Together, they have plans to give away hundreds of millions of US dollars in credits to spur use of their ChatGPT-style apps.

In 2024, Alibaba approved a US$25 billion stock repurchase programme, doubling down on the US$9.5 billion it green-lit a year earlier, after nixing plans to pursue a public listing for its burgeoning cloud division. Tencent last year laid out plans to buy back at least HK$80 billion (S$13 billion) worth of shares and proposed a 32 per cent hike in its annual dividend for 2025.

Beyond the Internet sphere, other major Chinese firms listed in Hong Kong are also seeking to shore up investor confidence by buying back their own shares. Among them are Xiaomi, Pop Mart, and Geely Automobile Holdings, which have been active in recent trading days. BLOOMBERG