NetEase's Cloud Village shares slip in Hong Kong debut

NetEase's Cloud Village shares slip in Hong Kong debut
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HONG KONG (Dec 2): Shares in Cloud Village Inc, the music streaming business owned by NetEase Inc, fell 1% on their first day of trade.

The stock's performance was 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 had upended business norms.

Cloud Village raised US$421 million (about RM1.78 billion) in its initial public offering (IPO), with its shares priced at HK$205 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 only at the midpoint of the range, indicating that 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 US$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.