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Weibo (WB) stock slumps on Hong Kong debut

By Mensholong Lepcha

08:54, 8 December 2021

Weibo logo on smartphone screen
Weibo closed over 7% lower to its final offer price on its HKEX debut on Wednesday – Photo: Shutterstock

Chinese microblogging platform Weibo Corporation closed over 7% lower to its final offer price on its Hong Kong stock exchange debut on Wednesday.

Weibo, which has a primary listing on the Nasdaq, closed at HKD253.2 in Hong Kong on Wednesday. A final offer price of HKD272.8 per share was set for its Hong Kong public offering.

The company’s stock slump on its Hong Kong debut comes on the back of reduced investor appetite for US-listed Chinese tech companies, following the delisting of DiDi Global just over five months into the ride-hailing firm’s New York initial public offering (IPO).

Hong Kong tech near record lows

In Hong Kong, tech companies have seen stock prices tumble in recent sessions in anticipation of further regulatory scrutiny from state authorities.


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


44,097.60 Price
-1.270% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.68 Price
+0.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

The Hang Seng TECH index hit a new all-time low earlier this week and has lost about 25% year to date.

Souring Sino-US relations is also a cause for concerns to investors. The Biden administration announced that US diplomats will boycott the 2022 Winter Olympics in Beijing.

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“Tangible risks”

“Weibo is currently trading at 37.2x 2020 P/E, above the average of other internet peers. Amidst tightening internet regulation, there could be tangible risks associated with the company’s operations and advertising revenue,” said Singapore-based investment firm KGI Securities.

Read more: Chinese AI firm SenseTime looks to raise 7.5m from HK IPO

Markets in this article

9.61 USD
-0.05 -0.520%
9.61 USD
-0.05 -0.520%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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