Baidu's Hong Kong-listed shares increased more than 7% following reports that its affiliate Kunlunxin is preparing a Hong Kong IPO that could value the company at $50 billion. Prospective investors have been asked to purchase semiconductors worth three to seven times their equity investment. Kunlunxin, founded in 2011 and primarily supplying chips to Baidu, has expanded external sales while remaining under Baidu's controlling stake.