HONG KONG: China’s Twitter-like social media platform Weibo fell during its debut on the Hong Kong stock exchange Wednesday as investors remain wary of tech during Beijing’s crackdown on the sector.
Weibo finished 7.2 percent down from its initial listing price of HK$272.80, a poor showing compared with recent first-day trade by major Chinese companies in Hong Kong.
Several US-listed Chinese tech firms such as Alibaba have held initial public offerings in Hong Kong over the past two years as the United States has stepped up scrutiny of Chinese companies.
Listing in Hong Kong is seen as a hedge against the risk of being removed from US exchanges and a way of accessing an investor base closer to their home markets.
Last week Chinese ride-hailing giant Didi Chuxing announced it would delist its shares from the New York Stock Exchange, marking the end of a cushy relationship between Wall Street and Chinese tech giants.
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