Bilibili shares opened at 790 Hong Kong dollars, falling by 2.2%. They extended those losses to hit an intra-day low of 753 Hong Kong dollars, nearly 7% lower from the offer price. At around 13:41 p.m. local time, Bilibili shares were trading at 780 Hong Kong dollars, a 3.4% fall.
Bilibili is already listed on the Nasdaq in the U.S. and this was its secondary listing, when the company issues shares on another stock exchange. Unlike initial public offerings where companies issue shares for the first time, secondary listings don’t usually see huge price movements on the first day.
Last week, the U.S. Securities and Exchange Commission adopted a law which could increase the auditing requirements for Chinese companies and also gives the power for authorities to delist certain firms that fall foul of the rules.
A secondary listing could be a hedge against a delisting.
Not only are these companies 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 sentiment toward Chinese tech names.
Bilibili makes money through mobile gaming and selling virtual gifts to users who then give them to their favorite live streamers. It’s U.S. listed shares have rallied over 300% in the past 12 months.