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NetEase’s Cloud Village Shares Decline in Hong Kong Debut

The stock’s performance is being closely watched as a barometer of investor appetite for Chinese tech related deals amid a regulatory clampdown on the sector


NetEase
The logo of internet technology company NetEase is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai Photo: Reuters

 

Shares in Cloud Village, the music streaming business owned by NetEase, fell 1% on their first day of trade.

The stock’s performance is being closely watched as a barometer of investor appetite for Chinese tech-related deals amid a regulatory clampdown on the sector by mainland authorities that has upended business norms.

Cloud Village raised $421 million in its initial public offering, with its shares priced at HK$205 ($26.30) each in one of Hong Kong’s first major tech listings since mid-year.

NetEase sold 16 million shares in the IPO but the final price set was set only at the midpoint of the range, indicating the deal was not swamped by demand.

The IPO was Cloud Village’s second second attempt to list this year.

The company shelved its initial plan to raise $1 billion in August after Chinese regulators toughened rules affecting the tech sector. Cloud Village then scaled down the size of the deal to win investor support.

 

  • Reuters with additional editing by Kevin Hamlin

 

 

 

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Kevin Hamlin

Kevin Hamlin is a financial journalist with more than 40 years of experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.

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