Chinese video platform Bilibili fell 2.23 percent to HK$790 ($101.6) per share at the opening bell in its secondary listing in Hong Kong on March 29 amid what the company's founder calls a "black swan event".
The stock fell as much as 6 percent after the opening bell, falling below its offering price of HK$808 per share. As of the market close, it was down by 0.99 percent, giving it a market capitalization of about HK$302 billion.
The company's secondary listing in Hong Kong comes at a time when many Chinese technology stocks trading in the US stock market have plunged.
China concept stocks in the US stock market generally plunged on March 24, with most down more than 10 percent, after the SEC passed the Holding Foreign Companies Accountable Act on Wednesday.
The subsequent selloff in those stocks didn't end there, with even bigger declines on Friday, allegedly linked to positions in legendary investor Bill Hwang's Archegos Capital being forced to close out by some banks.
Regarding Bilibili's share price performance in Hong Kong, its chairman and CEO Chen Rui said that the capital market situation is relatively poor and this should be considered a black swan event.
"I believe our company will prove its worth in the future. Today there is a feeling of Yesterday Once More, since we also fell below the issue price when we listed in the US stock market. But I said at that time that no one would remember that Bilibili's share price fell below the issue price in ten years," he said.
The popularity of video is a huge wave that will become mainstream on the Internet, he mentioned, adding that video creation will change everyone's life.
Founded in June 2009, Bilibili's marketing costs have been climbing, rising from 14.2 percent of net revenue in 2018 to 17.7 percent in 2019 and 29.1 percent in 2020.
The company's total net operating in 2020 is three times higher than in 2018, with mobile games decreasing from 71.1% to 40% of net turnover, an increase of 63.58% year-on-year.
Mobile games, value-added services, advertising, and e-commerce are the four sources of revenue for this company, with mobile games and consumed company equity investments together accounting for more than half of the amount.