Chinese social media large Weibo’s stocks fall in Hong Kong debut

Social media large Weibo has made its Hong Kong inventory marketplace debut as Chinese era companies come beneathneath excessive stress at domestic and abroad.

Weibo’s stocks fell via way of means of greater than 6% in the first little while of buying and selling.

The company joins different main Chinese era organizations, which includes Alibaba and JD.com, which might be indexed in each the US and Hong Kong.

It comes simply days after Chinese ride-hailing large Didi stated it’ll pass its list to Hong Kong from the US.

Weibo raised $385m (£290m) from the secondary proportion list in Hong Kong.

The corporation’s US-indexed stocks have misplaced round a 3rd in their fee withinside the closing six months.

Why is Weibo list in Hong Kong?

Trade tensions among Washington and Beijing that heightened extensively at some stage in the Trump management display little signal of easing under President Biden.

Chinese organizations which have their stocks indexed withinside the US have determined themselves stuck withinside the center of the continuing spat among the world’s largest economies.

In current months, Beijing has extended its oversight of China’s largest companies with the era enterprise coming under unique scrutiny.

Meanwhile, the US Securities and Exchange Commission (SEC) has finalised regulations that could imply US-indexed overseas organizations may be delisted if their auditors do now no longer follow requests for statistics from regulators.

Some Chinese companies at the moment are searching out opportunity sources of investment in case they need to take their stocks off US inventory markets.

“It might be disastrous if all Chinese organizations are pressured to delist from US exchanges. Despite the acute opposition among the 2 countries, they need, must, and need to be interdependent financially, economically, technologically, socially, and culturally,” Nina Xiang, handling director of China Money Network in Hong Kong stated.

Will Weibo comply with Didi out of the US?

Last week, ride-hailing large Didi Global stated it it might take its stocks off the New York Stock Exchange and pass its list to Hong Kong.

It raised $4.4bn from its US marketplace debut on the cease of June, however inside days China’s net regulator ordered on line shops now no longer to provide Didi’s app, pronouncing it illegally accrued customers’ private data.

Didi’s statement that it became making plans to delist withinside the US got here simply hours after the SEC statement that it became shifting in advance with its efforts to put off Chinese companies from US inventory exchanges for now no longer complying with new accounting regulations.

Didi’s stocks have fallen via way of means of greater than 50% withinside the 5 months when you consider that they commenced buying and selling in New York.

Ms Xiang believes Weibo ought to be safe, for now: “Much relies upon on if Chinese and American regulators can paintings thru their variations to attain an answer on get admission to to auditing documents.”

What is Weibo?

Weibo is the Chinese phrase for microblog and the company is called the us of a’s model of Twitter. It released in 2009 and now has greater than 570m month-to-month customers, in comparison to Twitter’s 211m customers consistent with month. The corporation is China’s 2d largest social media platform, after era large Tencent’s WeChat. China is the world’s largest social media marketplace, with greater than 900m customers. Major US systems like Twitter and Facebook are blocked in China, which means the us of a gives big boom ability for home social media companies like Weibo.

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