Stock debuts in Hong Kong

Weibo booth at China Joy Entertainment Expo held in Shanghai, China on August 1st.

Costfoto | Barcroft Media | Getty Images

Hong Kong listed stock Weibo Their trading debut on Wednesday opened 6% lower.

The stock opened at HK $ 256.20 ($ 32.85) compared to the offer price of HK $ 272.80 ($ 34.98). At some point, the price dropped to HK $ 253.20.

It is a secondary listed company of a major Chinese social media company that has raised about $ 385 million.

The main list is in Nasdaq, USA, where stock prices rose 4.69% in an overnight session.

Weibo’s secondary listing comes as a Chinese ride hailing giant Didi Said last week Delisted from the New York Stock Exchange, Plan to be listed in Hong Kong.

Chinese regulators Reportedly I’m dissatisfied with Diddy’s decision to go public in the United States without first resolving an open cybersecurity issue. Regulators have informed company executives to plan to delist from the United States due to concerns about data breaches. Reportedly..

Didi Didi is China’s largest ride-hailing app and possesses a large amount of data on travel routes and users.

Weibo is the latest Chinese internet company that has established a dual-listed company in Hong Kong.

Others doing so in recent years include search engine giants Baidu, E-commerce giant Alibaba, Its rivals Not only a game company NetEase..

China’s technology crackdown

South China Morning Post reported This week, China’s premier policy-making body has removed antitrust laws from its 2022 economic goals and instead focused on technology development. Last year, policymakers set a key economic goal for 2021 to tackle “disordered expansion of capital” and monopoly practices, which foresaw a crackdown on technology, SCMP reported.

According to Qi Wang, CEO of MegaTrust Investment (HK), efforts to regulate major Chinese Internet companies are expected to continue in the short term.

“Don’t be disillusioned with the end of this. This will happen in the coming years. It’s definitely not over. But in the short term, the worst of the Big Tech crackdown may be over. I think, “He told CNBC.”Street sign Asia” on Wednesday.

Read more about China from CNBC Pro

Policymakers are likely to consider the impact of new regulations on the broader Chinese economy and give technology companies time to comply with them, he added. “That said, if companies are still trying to find loopholes and avoid them. [the rules]Of course, another crackdown can be expected. “

Chinese market regulators fined companies such as Alibaba, and Baidu last month for failing to declare 43 transactions dating back to 2012. Reuters reported..

— — CNBC’s Weizhen Tan and Arjun Kharpal contributed to this report.

Stock debuts in Hong Kong

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