Bilibili falls nearly 7% on first day of trade in Hong Kong as Chinese tech stocks face pressure

The Bilibili gross sales effect is pictured within the route of the 2019 Yangtze River Delta Global Cultural Industries Expo at Nationwide Exhibition and Convention Heart on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Crew | Getty Photos

GUANGZHOU, China — Shares of Chinese video and gaming company Bilibili opened lower on the principle day of trading in Hong Kong on Monday.

The Nasdaq-listed Chinese know-how firm raised around $2.6 billion after pricing its shares at 808 Hong Kong bucks (about $103) each closing week.

Bilibili shares opened at 790 Hong Kong bucks, falling by 2.2%. They extended these losses to hit an intra-day low of 753 Hong Kong bucks, with regards to 7% lower from the supply label. At around 10: 45 a.m. native time, Bilibili shares were trading at 785 Hong Kong bucks, a 2.8% drop.

Bilibili is already listed on the Nasdaq within the U.S. and this was once its secondary itemizing, when the company concerns shares on one other stock alternate. In difference to initial public choices where companies hiss shares for the principle time, secondary listings effect no longer normally witness mountainous label actions on the principle day.

Lots of U.S.-listed Chinese shares personal applied secondary listings in Hong Kong along side Alibaba and Baidu amid endured tensions between Washington and Beijing that threaten to impress international companies listed on Wall Street.

Last week, the U.S. Securities and Alternate Rate adopted a regulations which might well lengthen the auditing requirements for Chinese companies and likewise offers the energy for authorities to delist certain firms that drop corrupt of the principles.

A secondary itemizing normally is a hedge in opposition to a delisting.

Bilibili’s debut in Hong Kong also comes as Chinese tech shares are being equipped-off. Last week, a few of the biggest twin-listed names misplaced billions of bucks of label in precisely a few days.

Not only are these companies facing the specter of delisting within the U.S., they’re also dealing with elevated regulatory scrutiny at home. That has been weighing on investor sentiment against Chinese tech names.

Bilibili makes cash by approach to mobile gaming and promoting digital items to customers who then give them to their favourite dwell streamers. Or no longer it is U.S. listed shares personal rallied over 300% within the past 12 months.

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