China’s second-largest music streaming service has scrapped a $1bn initial public offering in Hong Kong as concerns about a growing regulatory crackdown on the country’s technology groups have hit investor confidence.
Cloud Village, the music streaming business of tech group NetEase, will not go ahead with an IPO that was scheduled to launch this week due to a disappointing response from investors, according to three people familiar with the matter. The company intended to wait for better market conditions to potentially restart its listing plans, one of the people said.
The IPO would have been among the largest share sales in Hong Kong this year and the first big one by a Chinese technology company since Beijing launched a crackdown on foreign listings last month.