Mogu, a Chinese fashion e-commerce app backed by Tencent, is now targeting a $2 billion valuation in its U.S. initial public offering, lower than the $3 billion price tag in its last fundraising two years ago, Bloomberg reported. The new valuation target is also half of Mogu’s previous IPO valuation target of $4 billion back in April, according to Bloomberg.

The steep decline in Mogu’s valuation reflects an increasingly harsh environment for Chinese tech companies planning IPOs. While tech stocks have struggled globally in recent months, China’s economic slowdown creates more uncertainties for e-commerce companies that rely on consumer spending. 

Mogu’s listing comes after disappointing performances of several major Chinese tech IPOs. Smartphone giant Xiaomi and on-demand services app Meituan, which went public in Hong Kong earlier this year, are both trading below their IPO prices. Mogu, which was created by a 2016 merger between two fashion e-commerce startups Mogujie and Meilishuo, filed for an IPO earlier this month.