SenseTime shares jumped over 20% of the Hong Kong IPO delays

Shares in SenseTime jumped more than 20 percent on its first day of trading nearly three weeks after the first suspension of their first offering while the US suspended China’s largest intelligence company.

SenseTime raised $ 740m in Hong Kong on Thursday following its initial plans confused while Washington barred Americans from investing in the company.

Joe Biden’s supervisors said criticized SenseTime, a face-to-face activist for human rights abuses against Uyghur Muslims in the Xinjiang region of northwestern China. The company has denied the allegations.

The list was quickly revived after Chinese government-sponsored agencies intervened and promised to buy about two-thirds of the donations, while fundraisers are increasing their pledges from $ 450m to $ 511.6m.

The company bought shares under its brand at HK $ 3.85 (US $ 0.49), valued at $ 16.4bn. Shares were selling HK for $ 4.21 during the day.

The largest retailer on the corner, the state-funded Mixed-Ownership Reform Fund, bought $ 200m of shares, while the Shanghai Xuhui Capital fund bought $ 150m.

Some government agencies have promised to buy more shares after regulators forced SenseTime sponsors such as Focustar Capital, a US currency trading company, to withdraw. They were detained in their custody until the end of June 2022.

SenseTime is not profitable and will waste 60 percent of the money earned on research and development. This includes building a new one AI supercomputing data center near Shanghai to be completed in 2022 and develop its AI semiconductors.

Andy Maynard, a trader at the Chinese Renaissance Commercial Bank, said the most important factor was the mix of Hong Kong-based buyers with international and regional currencies.

“SenseTime Notes [was] with the help of domestic finance, “said Ke Yan, an expert at DZT Research.

The IPO has boosted the assets of the company’s founder, Tang Xiao’ou, who owns 20.8 percent of the company. Tang worked as a computer monitor at Microsoft Research Asia before launching SenseTime in 2014. The company provides state-of-the-art monitoring technology to Chinese government officials.

SenseTime said in a statement on the Hong Kong stock exchange that trade restrictions in Washington “do not work at the moment” because the US Treasury Department has selected its smaller company, not a major open-air company.