Info-Tech

Chinese tech stocks under pressure- Bilibili falls almost 7% on the first day of trade in Hong Kong

China- On Monday, shares of Chinese video and gaming company Bilibili has opened lower on the first day of the trading.

Moreover, the Nasdaq-listed Chinese technology firm has gained around $2.6 billion after the pricing it shares at 808 Hong Kong dollars (around $103) in each of the last weeks.

Well, the shares of Bilibili have unlocked at 790 hong Kong dollars which failed by 2.2%. Moreover, they have now extended the losses to hit an intra-day low of 753 Hong Kong dollars which is almost 7% lower than the offer price. At almost 10:45 a.m. local time, Bilibili shares were almost trading at 785 dollars that is 2.8%fall.

Already Bilibili is listed on the Nasdaq in the U.S. This was the secondary as the company issued shares on another stock exchange. Distinct initial public offerings where the companies are issuing shares for the first time. The secondary listings never find huge price movements on the first day.

However, a large number of U.S.-listed Chinese stocks have carried out secondary listings in Hong Kong that involves Alibaba and Baidu. Among these tensions continued between Beijing and Washington which threaten impact on foreign companies listed on Wall Street.

In the last week, the U.S. Securities and Exchange Commission has now adopted a law that may increase the auditing requirements for Chinese companies and even provides power for authorities to delist certain firms that fall foul of the rules.

However, a secondary listing has hedged against a delisting. Bilibili’s debut in Hong Kong has now come as Chinese tech stocks are being sold off. In the last week, some of the biggest dual-listed names lost billions of dollars of charge in just a few days.

Not only these companies are now facing the threat of delisting in the U.S., but they’re also managing with the increased regulatory scrutiny at home. This might have been weighing on investor sentiment towards the Chinese tech names.

Bilibili makes a profit through mobile gaining and selling of virtual gifts to users who have now given them to their favorite live streamers. However, in the last 12 months, the U.S. listed shares have now railed over 300%

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