Cloud Village Inc, the music streaming arm of Chinese gaming giant NetEase Inc (網易), is delaying the launch of an initial public offering (IPO) in Hong Kong that was expected to raise around $ 1 billion, people familiar with the game said. case.

The unit tested demand for its offering last week, but is not moving forward with investor orders, people said, asking not to be identified as the information is not public.

He intends to wait for better market conditions, one of the people said.

Photo: Reuters

With an expected size of around $ 1 billion, Cloud Village’s IPO is said to be one of the first potential sales of shares in Hong Kong by a tech company this year.

IFR first reported the delay yesterday. A representative for the company did not immediately respond to requests for comment.

A growing campaign by Beijing to curb its tech and internet sectors has sparked a strong sell-off from Chinese tech giants, from Tencent Holdings Ltd (騰訊) to Kuaishou Technology (快手).

The regulatory assault at one point wiped out more than US $ 1 trillion in the market value of Chinese stocks.

Since the start of last month, Hong Kong’s Hang Seng Tech Index has lost 18%, while the NASDAQ Golden Dragon Index, which tracks Chinese companies listed in the United States, has fallen 24% over the past month. same period.

Cloud Village’s parent company NetEase was also swept away by the sale after Chinese state media criticized the gaming industry, leading investors to seek out the next companies to review.

The video game company’s Hong Kong shares cut their recent losses yesterday, advancing 4.7% after Cloud Village’s announcement. They have fallen by around 9% since July 30.

Quotes in the territory have slowed sharply over the past month, due to rocky markets and the usual summer lull.

Chinese electric vehicle maker Li Auto Inc (理想 汽車) raised US $ 1.5 billion in a double primary listing last week, but other than that there have been no major offers since June.

The Chinese government’s efforts have resulted in the suspension of most, if not all, of the planned IPOs in the United States by companies on the mainland. Beijing last month proposed new rules strengthening its oversight of overseas IPOs in an effort to protect data security.

A number of companies, such as logistics and on-demand delivery company Lalamove (貨 拉拉), are considering moving their IPOs to Hong Kong given the growing scrutiny, Bloomberg News reported.

TikTok owner ByteDance Ltd (字節 跳動) is relaunching its Hong Kong listing plan by early next year, even as Chinese authorities step up their crackdown on the country’s tech companies, said reported the Financial Times.

Registration could take place either next quarter or early next year, the newspaper said in a report on Sunday, citing three unidentified people with knowledge of the plans.

ByteDance has worked to address data security concerns raised by Chinese regulators, the newspaper reported.

It goes through a review process and has submitted cases to Chinese authorities, and final guidelines are expected from ByteDance by next month, one of the people quoted said.

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