HONG KONG (AP) — Shares in JD Logistics, the delivery subsidiary of China’s biggest online retailer jumped as much as 18% in their first trading day Friday as investors bet on more rapid growth for internet industries despite tighter regulatory control by Beijing.

JD Logistics raised $3.1 billion in this year’s second-biggest biggest initial public offering in Hong Kong after a video service, Kuaishou, raised $5.3 billion.

The company, which ended the day up 3.3%, provides various services such as warehousing, last-mile deliveries and cold chain logistics, according to its prospectus.

JD Logistics CEO Yu Rui said in an interview with reporters Friday that the funds raised from its IPO will go to expanding its logistics network, including in smaller cities in China, and worldwide.

“We will focus on the supply chains and improve our services,” Yu said.

It was set up in 2007 by JD Group to facilitate warehousing, handling of inventory and e-commerce deliveries as the online shopping industry boomed in China. JD Logistics was spun off in 2017 as a standalone unit.

Beijing recently has been cracking down on China’s thriving internet industry, seeking to exert more control and curb anti-competitive behavior, with actions taken against companies including Alibaba, Tencent and Meituan.

However, e-commerce got a huge boost in China and elsewhere with many people shopping online during the pandemic.