Cloud Village Inc, the music streaming unit of NetEast Inc., is postponing the launch of a Hong Kong IPO set to raise $1 billion, according to a report by Bloomberg on Monday.

  • The unit tested demand for its IPO offering last week but is not going ahead with taking investor orders.
  • Music streaming unit’s IPO would be the biggest potential first-time share sale in Hong Kong at about $1 billion by a technology company.
  • Chinese government’s crackdown on its tech and Internet sectors has triggered a sharp selloff in Chinese technology giants from Tencent to Kuaishou Technology.
  • The regulatory actions almost wiped out over $1 trillion of market value from Chinese stocks. Since the start of July, Hong Kong’s Hang Seng Tech Index has declined by 18%.

Cloud Village’s parent firm NetEase was also affected in the selling off after Chinese state media criticized the gaming industry. The gaming company’s shares rebounded from recent losses rising by 4.7% on Monday. NetEase Inc up +2.58%.