Chinese investors have proven themselves to be acquisition hungry, snapping up fashion assets globally.

Mogu’s is not doing well on Wall Street.

The fashion and beauty e-commerce platform went public on Thursday, with less-than-stellar results, in spite of a booming fashion and luxury market in China.

Mogu’s $14-a-share asking price immediately fell to around $12, slowly winding its way back up during the rest of Thursday’s trading session. Still, the Chinese e-commerce company’s stock was down more than 5 percent Friday morning to just over $13 a share.

The company’s plan to go public, nearly eight years after it was founded, points to increasing competition among fashion and apparel players in Asia. More than three dozen China-based companies have gone public in the U.S. this year.

In addition, unresolved trade tensions between the U.S. and China could be weighing on investors.

Mogu, which describes itself as “a fashion destination” on its web site, became popular among digitally savvy Millennials and Gen Zers by implementing live-streaming videos. Both indie boutiques and large brands alike can broadcast videos with people wearing the fashions it wants to advertise. Consumers then see the clothes or accessories on a real-life model and have the option to buy.  

A screenshot from Mogu’s regulatory filing with the U.S. Securities and Exchange Commission.  Courtesy

The platform boasts more than 62 million monthly active users. 

“People shop not only to buy, but also for leisure, entertainment and to stay informed of the latest trends,” a report filed with the U.S. Security and Exchange Commission reads.

But the IPO points to a company that, despite its success, has not been profitable. In the same regulatory filing, Mogu reported a loss of more than $44 million for the six months ending Sept. 30. 

The IPO was the company’s attempt to make money, selling 4.75 million company shares and raising around $67 million. The platform is backed by Tencent Holdings, among other investors.

A representative for Mogu said the company is in its quiet period and would not comment further.