February 5, 2021: Chinese short video company shares Kuaishou increased around 200% at the open on its debut in Hong Kong.

Technology firm raised 41.28 billion Hong Kong dollars from the starting public offering after pricing its shares at 115 Hong Kong dollars each, at the top of its expected range.

Kuaishou shares opened up at 338 Hong Kong dollars. The stock came down later but still ended the day 160% higher, closing at 300 Hong Kong dollars a share.

 The short video app is the company’s main business, and money is made from users buying virtual gifts to gift their favorite streamers. Kuaishou is pushing into a new area known as e-commerce.

Kuaishou said its IPO was oversubscribed with high demand. If the overallotment option is exercised, allowing the investment bank to issue more shares, then Kuaishou could raise over $6 billion.

Kuaishou’s listing will be an appetite test for Chinese technology firms just as Beijing steps up its scrutiny of the sector in areas from anti-monopoly to data protection.

 In November, the Chinese government introduced rules around live-streaming shopping, which could impact Kuaishou.

The IPO is a win for the Hong Kong stock exchange, which has attracted high profile technology companies and secondary listings. U.S.-listed Chinese companies, including Alibaba and JD.com, have also raised money in Hong Kong.

Kuaishou faces stiff competition in China from rivals such as Douyin, the Chinese version of TikTok owned by ByteDance, and Tencent’s WeChat messaging app.