According to people familiar with the situation, Cloud Village Inc., the music streaming unit of Chinese gaming giant NetEase Inc., has postponed the launch of a Hong Kong initial public offering that was expected to earn nearly $1 billion.

The company tested demand for its IPO last week, but isn't taking investor orders, according to the people, who asked not to be identified because the information isn't public. One of the persons stated the company intends to wait for better market circumstances.

Cloud Village's IPO, which is projected to be worth around $1 billion, would be one of the largest first-time share sales in Hong Kong by a technology company this year.

The delay was initially reported by IFR on Monday. Requests for comment were not immediately returned by a corporate spokesman.

From Tencent Holdings Ltd. to Kuaishou Technology, a broad drive by Beijing to rein in its tech and Internet industries has sparked a severe selloff in Chinese technology titans. The regulatory crackdown wiped out more than $1 trillion in market value from Chinese stocks at one point.

After Chinese state media slammed the gaming business, investors turned their attention to the companies next in line for examination, which included Cloud Village's parent company NetEase.