Shares in Chinese smartphone maker Xiaomi dropped some 6% at the beginning of its first day of trading on Hong Kong’s stock market.
The world’s fourth-largest smartphone maker raised $4.7bn (£3.5bn), valuing the company at $54bn – just over half the target it set earlier this year.
As the first of many Chinese tech firms to list in Hong Kong in 2018, it marks a disappointing start for the sector.
Chinese stocks have fallen recently in the lead up to the US-China trade war.
Xiaomi’s trading debut was the biggest technology share sale since fellow China tech giant Alibaba raised $25bn in 2014.
And it was seen as the most important tech listing for Chinese peers due to make their own initial public offerings in the coming months.
They include online food delivery and ticketing platform, Meituan Dianping and entertainment giant Tencent Music, which both plan to list on the Hong Kong stock exchange later this year.
But the firm often called China’s Apple failed to attract strong investor interest with its stock falling from HK$17 to as low as HK$16 in the first hour of trade.
Outside its home market in China, Xiaomi is a major player in India where it rivals Samsung to be the most the popular handset maker.
Last year, Xiaomi moved into the Spanish market and reports suggest it is also looking to get into the US to take on Apple.
The listing comes as Chinese stock markets have been on the defensive amid growing trade tensions between the US and China. On Friday, the US fired the opening shot in an outright trade war between the two economic giants.
Against that backdrop, Hong Kong’s benchmark Hang Seng index fell 2.7% last week and has dropped 5.8% so far this year.
The trade tensions have also affected investor sentiment in mainland China with the Shanghai Composite slipping into bear territory last month.