(Bloomberg) -- Onewo Inc., the property management unit of real estate developer China Vanke Co., slumped in its trading debut in Hong Kong.

The shares declined 7.6% to HK$45.60. They were sold at HK$49.35 each, the mid-point of the marketed range. The IPO raised about about HK$5.8 billion ($739 million). 

Onewo’s drop in its first day of trade in Hong Kong gives an indication of how investors are responding to new share sales by firms tied to Chinese developers. The nation’s real-estate sector has been struggling to emerge from a long-simmering crisis, as Covid lockdowns hurt home purchases and increased pressure on cash-strapped builders.

Onewo offers residential property services, commercial and urban space integrated services and so-called remote space-tech solutions, incorporating artificial intelligence and business process outsourcing. 

Shenzhen-based Vanke, which owned about 63% of the unit before the IPO, stood out last month as the first top-tier China property developer to report stronger earnings, defying a downturn that’s engulfed peers once seen as relatively safe.

Onewo’s IPO drew six cornerstone investors that together were willing to snap up about $276 million worth of shares based on the mid-point of the range. They include UBS Group AG’s asset management arm and Singapore’s Temasek Holdings Pte.

Citic Securities Co., Citigroup Inc. and Goldman Sachs Group Inc. are joint sponsors of the offering.

©2022 Bloomberg L.P.