China\`s answer to YouTube slumps on market debut

Shares of Chinese video platform Bilibili have slumped at their launch on the Hong Kong stock exchange. The shares opened at HK$790 ($101.6 ; £73.7)_ which is 2.2% below their issue price_ before slipping another 4%.

Bilibili is similar to YouTube_ but the company hopes to increase revenues through Netflix-style subscriptions.

The listing is the latest in a large number of 'homecomings' for US-listed Chinese companies.

The Chinese firms have sought out secondary listings in Hong Kong due to increased scrutiny from US regulators_ which began under President Donald Trump.

In part_ the listings are insurance against being kicked off US exchanges_ a process which has already started for three Chinese telecommunications companies.

In January_ The New York Stock Exchange suspended state-backed telcos China Telecom_ China Unicom and China Mobile.

'Homecoming' listings have not always generated the same level of excitement from investors as some other tech listings.

Shares of the internet search giant Baidu only edged slightly higher when they listed in Hong Kong last week_ while e-commerce giant JD.com also had a lacklustre secondary launch last year.

After pricing shares at $104 each last week_ Bilibili raised $2.6bn_ which was short of the $3bn it had anticipated.

The company's launch is the weakest major share market offering in Hong Kong since Yum China Holdings shares shed 6.3% on debut in September last year_ according to Refinitiv data.