Qiniu, an Alibaba-backed cloud and data services company, made a dismal debut on the Hong Kong stock exchange on Wednesday, with its shares plunging as much as 58% in early trading. The company's stock opened at HK$1.14, a steep decline from its initial public offering (IPO) price of HK$2.75.

The lackluster IPO performance can be attributed to several factors. Firstly, Qiniu priced its shares at the lower end of the indicative range, signaling weaker investor demand. Despite raising HK$439.3 million (US$56.6 million) in gross proceeds, the company struggled to attract investors amidst the broader market uncertainty surrounding Chinese equities.

Investor sentiment towards Chinese stocks has softened in recent weeks due to disappointment over the lack of details from Beijing regarding measures to bolster the economy. This uncertainty, coupled with Qiniu's reported net loss in 2023 as the company prioritized expansion over short-term profitability, may have further deterred potential investors.