(Bloomberg) Shares of China’s Weibo Corp. fell 9.6% in Hong Kong on Tuesday to trade at HK$219.80, below its initial public offer price of HK$272.80 after a fine by the regulator.
The Cyberspace Administration of China fined Weibo 3 million yuan or $470,000, with the move prompting investor caution on the further crackdown of the country’s tech sector.
Weibo, a Twitter-like website, was flagged for its site’s content, with the regulator citing infringement of cybersecurity and minor protection.
Weibo has said it accepts the official criticism and promises to address harmful content, including soft pornography and malicious marketing.
The fall of Weibo shares also dragged other Chinese internet stocks, with Bilibili Inc. down 5.7% while Kuaishou Technology plunged 4.9%. The Hang Seng Tech Index incurred losses for the third straight day.
9898: HKG is down -9.62%.
