Business

shares make their Hong Kong launching

Weibo cubicle at ChinaPleasure Entertainment Expo in Shanghai, China, Aug. 1.

Costfoto | Barcroft Media | Getty Images

Hong Kong-noted shares of Weibo opened 6% lower in their trading launching on Wednesday.

Shares opened at 256.20 Hong Kong dollars ($32.85) a piece compared to a deal cost of 272.80 Hong Kong dollars ($34.98).

It is a secondary listing for the Chinese social networks giant, which raised around $385 million.

The primary listing is on the Nasdaq in the U.S., where the stock increased 4.69% in the over night session.

Weibo’s secondary listing comes as Chinese ride-hailing giant Didi recently stated it will delist from the New York Stock Exchange, and make strategies to list in Hong Kong.

Chinese regulators were apparently dissatisfied with Didi’s choice to list in the U.S. without very first solving exceptional cybersecurity concerns. Regulators informed the company’s executives to come up with a strategy to delist from the U.S. due to issues around information leak, according to reports.

Didi is China’s biggest ride-hailing app and owns a big volume of information on travel paths and users.

Weibo is the current Chinese web business to do a secondary listing in Hong Kong.

Others that have actually done so over the last few years consist of online search engine giant Baidu, e-commerce leviathan Alibaba, its competing JD.com along with video gaming company NetEase.

It has actually been a wild flight over the previous year for China’s innovation sector. Regulators tightened their examination on business in a relocation that cleaned billions of dollars off their market price. Meanwhile, Beijing continues to promote technological self-sufficiency.

CNBC’s Weizhen Tan added to this report.

Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

Related Articles

Back to top button