Weibo sales space at ChinaJoy Leisure Expo in Shanghai, China, Aug. 1.
Costfoto | Barcroft Media | Getty Pictures
Hong Kong-listed shares of Weibo opened 6% decrease of their buying and selling debut on Wednesday.
Shares opened at 256.20 Hong Kong {dollars} ($32.85) a bit in comparison with a suggestion worth of 272.80 Hong Kong {dollars} ($34.98). At one level, the worth fell as little as 253.20 Hong Kong {dollars}.
It’s a secondary itemizing for the Chinese language social media large, which raised roughly $385 million.
The primary itemizing is on the Nasdaq within the U.S., the place the inventory rose 4.69% within the in a single day session.
Weibo’s secondary itemizing comes as Chinese language ride-hailing large Didi final week stated it is going to delist from the New York Inventory Trade, and make plans to checklist in Hong Kong.
Chinese language regulators have been reportedly sad with Didi’s determination to checklist within the U.S. with out first resolving excellent cybersecurity points. Regulators instructed the agency’s executives to provide you with a plan to delist from the U.S. because of issues round knowledge leakage, based on experiences.
Didi is China’s largest ride-hailing app and owns a big quantity of knowledge on journey routes and customers.
Weibo is the most recent Chinese language web firm to do a secondary itemizing in Hong Kong.
Others which have completed so lately embody search engine large Baidu, e-commerce behemoth Alibaba, its rival JD.com in addition to gaming agency NetEase.
China’s tech crackdown
South China Morning Put up reported this week that China’s prime policymaking physique left antitrust out of its 2022 financial objectives, and is as a substitute specializing in technological growth. Final 12 months, policymakers had set tackling “disorderly growth of capital” and monopolistic practices as key financial objectives for 2021, and that foreshadowed the tech crackdown, the SCMP reported.
China’s efforts to manage its massive web firms is anticipated to proceed within the close to time period, based on Qi Wang, CEO of MegaTrust Funding (HK).
“Do not get disillusioned that that is over. This shall be occurring for the subsequent few years. It is positively not over. However, having stated that, within the brief time period, I believe the worst of the massive tech crackdown is perhaps over,” he instructed CNBC’s “Avenue Indicators Asia” on Wednesday.
Policymakers will probably take into account the affect of the brand new rules on the broader Chinese language financial system, in addition to give the tech companies time to adjust to these guidelines, he added. “Having stated that, if the businesses nonetheless attempt to discover loopholes, and attempt to go round [the rules], in fact you may anticipate one other crackdown.”
China’s market regulator final month fined firms together with Alibaba, JD.com and Baidu for failing to declare 43 offers that date way back to 2012 to authorities, Reuters reported.
— CNBC’s Weizhen Tan and Arjun Kharpal contributed to this report.