Shares in the world’s top personal computer maker, Lenovo Group, fell the most in three years on the Hong Kong exchange after the company scrapped a plan to list in the Chinese mainland, less than a week after its application was accepted by regulators, reports Caixin. Shares of the Beijing-based tech giant dropped as much as 18% on Monday, the most since October 2018.
Lenovo, which first announced plans to list Chinese depositary receipts on Shanghai’s STAR market in January, said the validity of the information in its prospectus may have lapsed during the vetting process, according to a filing to the Hong Kong stock exchange.
Lenovo had sought to raise roughly RMB 10 billion ($1.55 billion) to fund artificial intelligence and cloud services projects as well as industrial investments. The stock had been among the best performers on the Hang Seng Technology Index this year prior to Monday’s slump, as investors bet that hardware makers and advanced tech companies will be relatively immune to China’s crackdown on its internet giants.