The Chinese Q&A website Zhihu fell over 20% in its trading debut in Hong Kong on Friday, the drop coming a day after the company was added to a list of firms facing potential ejection from US markets, reports Nikkei Asia. The drop marks the worst start among around 20 Chinese stocks that have taken up backup positions on the Hong Kong Stock Exchange since late 2019 in the face of potential removal from New York exchanges due to a dispute over audit inspections.
Existing shareholders of Tencent Holdings-backed Zhihu collected 791.94 million Hong Kong dollars ($100.95 million) from the company’s sale of stock at HK$32.06 a piece. The stock ended the day 23.6% lower at $24.50.
Zhihu’s New York Stock Exchange-traded shares, which ticked up 0.6% on Thursday to $1.66, have plunged more than 80% since peaking last year at $13.85. Many Chinese technology shares have fallen similarly in the US due to Beijing’s regulatory interventions and pressure from slowing economic growth, renewed COVID lockdowns and Washington’s own machinations.
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