“China’s internet sector will continue to be weighed by regulatory uncertainty in 2022 after the rapid and broad-reaching moves by authorities in 2021 across a wide spectrum of companies,” Matthew Kanterman, an analyst at Bloomberg Intelligence, wrote in a research note.
“The increased threat of delisting of U.S. shares by both American and Chinese regulators as well as the broader regulatory overhang may keep valuations depressed,” he wrote.
Internet pioneer Sina Corp. launched Weibo in 2009, swiftly amassing millions of registered users posting messages of 140 characters or less. It was listed on the Nasdaq in a 2014 IPO.
Goldman Sachs Group Inc., Credit Suisse Group AG, Citic Securities Co. and China International Capital Corp. are joint sponsors of the Hong Kong offering.