China’s second-largest music streaming service has scrapped a $1 billion initial public offering in Hong Kong as concerns about a growing regulatory crackdown on the country’s technology groups have hit investor confidence, reported the Financial Times.
Cloud Village, the music streaming business of tech group NetEase, will not go ahead with its IPO that was scheduled to launch this week due to a disappointing response from investors, according to three FT sources familiar with the matter. The company intends to wait for better market conditions to potentially restart its listing plans.
“Now we have one IPO withdrawal, and I don’t think that’s the end,” said Dickie Wong, head of research at brokerage Kingston Securities. Wong said he expected more Chinese tech groups to delay or cancel their listing plans in the months ahead.