By Yi Wei Wong
Shares of Chinese social media company Weibo Corp. fell in early trading in Hong Kong on Wednesday morning amid a challenging environment for Chinese tech shares.
Shares of the Beijing-based company fell as much as 7.2% from its asking price of HK$272.80. They last dropped 6.2% at HKD 256.00.
Weibo, which operates a Twitter-like microblogging service and counts Sina Corp. and Alibaba Group Holding Ltd. as a major shareholder, raised a net amount of HK$1.38 billion (US$177 million) in the offering. It intends to use the proceeds to grow its user base and pursue acquisitions and investments, among other activities.
Weibo has been listed in the US since late 2019. US deposits on Nasdaq have lost 18% this year.
The muted launch comes as a flurry of Chinese companies are rushing to make deals in Hong Kong, with companies in industries ranging from real estate to healthcare having raised billions of dollars. is the total amount earned. Weibo is one of many US-listed Chinese tech companies that are opting for a secondary listing as regulators step up scrutiny.
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https://www.marketwatch.com/story/weibo-shares-fall-in-hong-kong-trading-debut-271638931246?rss=1&siteid=rss Weibo shares fall on Hong Kong trading launch