As US-China Tensions Intensify, Bilibili Shares Plunge 4%
…following the trend of other Chinese stocks on the American bourses.
On July 22, United States-listed Chinese shares saw declines of up to 7% following the order by the US government to shut down China's consulate in Houston. Among them, Bilibili (BILI:NASDAQ) was one of the largest losers on the day: its stock declined by 4.19%, closing at USD 42.31.
Dubbed the ‘Chinese Youtube,’ Bilibili is an online video sharing community, with an HQ in Shanghai. Generation Z is the key user group of the company. Its video themes include animation, comics and games.
The company’s performance in the first quarter of 2020 largely beat Wall Street expectations as the outbreak has been stimulating online surfing. Bilibili earned CNY 2.32 billion in the three months through March 2020.
As a result, the company’s stock price grew by over 170% this year, peaking at USD 51 apiece in early July.
Meanwhile, the S&P 500 gained 0.57% as more stimulus is on the way and the improvement in the COVID-19 vaccine development is becoming apparent.
As investor sentiment is shaken by the recent geopolitical instability, we can expect further volatility around China Concepts Stocks (CCS).