Shanghai Biren Technology Shares Drop 12 Percent After Funding Round

Shanghai Biren Technology shares fell more than 12 percent in Hong Kong on Thursday following the announcement of a plan to raise HK$4 billion (US$510 million) through a share placement. The artificial intelligence chipmaker engaged placing agents on a best effort basis to issue 130 million new shares at HK$31.08 each.

This offering price represents a discount of approximately 10 percent compared to the previous day's closing price of HK$34.44. This is the second share placement the company has conducted since its Hong Kong listing in January, following an earlier round in July.

The stock sell-off comes as the company faces intensifying competition from other Chinese firms challenging the market dominance of Nvidia.