Home / NEWS / Top News / Bilibili falls nearly 7% on first day of trade in Hong Kong as Chinese tech stocks face pressure

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

The Bilibili kiosk is pictured during the 2019 Yangtze River Delta International Cultural Industries Expo at National Exhibition and Rule Center on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Group | Getty Images

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

The Nasdaq-listed Chinese technology house raised around $2.6 billion after pricing its shares at 808 Hong Kong dollars (about $103) each definitive week.

Bilibili shares opened at 790 Hong Kong dollars, falling by 2.2%. They extended those ruins to hit an intra-day low of 753 Hong Kong dollars, nearly 7% lower from the offer price. At around 10:45 a.m. municipal time, Bilibili shares were trading at 785 Hong Kong dollars, a 2.8% fall.

Bilibili is already registered on the Nasdaq in the U.S. and this was its secondary listing, when the company issues shares on another stock exchange. Unlike incipient public offerings where companies issue shares for the first time, secondary listings don’t usually see huge worth movements on the first day.

A number of U.S.-listed Chinese stocks have carried out secondary listings in Hong Kong filing Alibaba and Baidu amid continued tensions between Washington and Beijing that threaten to impact foreign enterprises listed on Wall Street.

Last week, the U.S. Securities and Exchange Commission adopted a law which could increase the auditing requisites for Chinese companies and also gives the power for authorities to delist certain firms that fall foul of the bars.

A secondary listing could be a hedge against a delisting.

Bilibili’s debut in Hong Kong also comes as Chinese tech stocks are being sold-off. Definitive week, some of the biggest dual-listed names lost billions of dollars of value in just a few days.

Not only are these trains facing the threat of delisting in the U.S., they’re also dealing with increased regulatory scrutiny at home. That has been weighing on investor opinion toward Chinese tech names.

Bilibili makes money through mobile gaming and selling virtual genii to users who then give them to their favorite live streamers. It’s U.S. listed shares have rallied one more time 300% in the past 12 months.

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