Bilibili closes lower on first day of trade in Hong Kong as Chinese tech stocks face pressure

The Bilibili sales space is pictured through the 2019 Yangtze River Delta International Cultural Industries Expo at National Exhibition and Convention Center on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Group | Getty Images

GUANGZHOU, China — Shares of Chinese video and gaming firm Bilibili closed lower on the first day of buying and selling in Hong Kong on Monday.

The Nasdaq-listed Chinese expertise agency raised round $2.6 billion after pricing its shares at 808 Hong Kong dollars (about $103) each last week.

Bilibili shares opened 2.2% lower at 790 Hong Kong {dollars}. They prolonged these losses to hit an intra-day low of 753 Hong Kong {dollars}, practically 7% lower from the supply worth, in early buying and selling. But the inventory erased some of these losses, lastly closing at 800 Hong Kong {dollars}, about 1% lower.

Bilibili is already listed on the Nasdaq in the U.S. and this was its secondary itemizing, when the corporate points shares on one other inventory change. Unlike preliminary public choices the place firms subject shares for the first time, secondary listings do not often see enormous worth actions on the first day.

A quantity of U.S.-listed Chinese stocks have carried out secondary listings in Hong Kong together with Alibaba and Baidu amid continued tensions between Washington and Beijing that threaten to affect international firms listed on Wall Street.

Last week, the U.S. Securities and Exchange Commission adopted a law which might enhance the auditing necessities for Chinese firms and in addition provides the ability for authorities to delist sure companies that fall foul of the foundations.

A secondary itemizing could possibly be a hedge in opposition to a delisting.

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

Not solely are these firms dealing with the menace of delisting in the U.S., they’re additionally coping with increased regulatory scrutiny at home. That has been weighing on investor sentiment towards Chinese tech names.

Bilibili makes cash by cellular gaming and promoting digital presents to customers who then give them to their favourite dwell streamers. It’s U.S. listed shares have rallied over 300% in the previous 12 months.

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