Weibo shares fall 9% after a regulator penalties the social media giant
Regulators penalised its operator three million yuan ($471,151) on Tuesday, sending its Hong Kong-listed shares down almost 9%.
The Chinese Cyberspace Administration penalised BJ Weimeng Innovation and Technology Company for several accounts and content that breached applicable rules and regulations.
From January to November, Weibo was hit with 44 fines totaling 14.3 million yuan ($2.24 million).
Following its secondary offering in Hong Kong last week, Weibo has lost nearly 10%. Its Nasdaq-listed shares fell 6% overnight and nearly 26% year-to-date.
According to a CNBC translation, Weibo responded to the penalties by saying it will make required corrections, take responsibility, and improve its governance.
Beijing has been regulating its digital giants, who have dominated the country’s online space.
Regulators halted Ant Group’s high-profile IPO late last year. There have been many new rules since then, from antitrust for online platforms to strengthened data protection laws. Alibaba and Meituan, a food delivery service, were both punished for potential antitrust violations.
Recent developments include political pressure on Chinese companies listed in the US to list closer to home, amid concerns that some may have to delist.
China’s Didi announced earlier this month that it will delist from the New York Stock Exchange and instead list in Hong Kong. Regulators fearing data leaking want Didi delisted from the New York Stock Exchange.
As US-China tensions escalated, former President Donald Trump took steps to remove US investment in Chinese enterprises, especially those perceived to have military ties.