By Tracy Qu

Shares of Beijing Tong Ren Tang Healthcare slumped in their Hong Kong trading debut.

The company raised 594.8 million Hong Kong dollars, equivalent to US$75.84 million, from the initial public offering, selling 108.15 million shares at HK$5.50 a piece, it said late Monday.

The stock was recently down 39% at HK$3.40 in Tuesday morning trade, underperforming the Hang Seng Index's 0.1% decline.

Cornerstone investors include state-backed Airport Technology Capital. CICC is the sponsor of the IPO.

The firm joins a slew of mainland Chinese companies raising funds in Hong Kong as a base to reach international investors.

Write to Tracy Qu at tracy.qu@wsj.com