FAST NEWS: BlackRock cuts Bilibili H-share stake below 5%
BlackRock has reduced its stake in Bilibili Inc. from 5.28% to 4.44% by selling approximately 2.85 million shares, as disclosed in a Hong Kong Stock Exchange filing. This sale drops its holdings below the 5% threshold, eliminating the need for further disclosure unless the stake increases again. Such reductions are often viewed negatively, indicating potential pessimism about the company's future. Bilibili has faced consistent losses since its 2018 Nasdaq listing, although its revenue grew by 13.7% in the first half of this year. Following the news, Bilibili's shares fell by 5.6%.
The Latest: Asset manager BlackRock disclosed it sold about 2.85 million Hong Kong-listed shares of Bilibili Inc. (9626.HK, BILI.US) on Sept. 10, reducing its stake in the video site from 5.28% to 4.44%, according to a new Hong Kong Stock Exchange filing.
Looking Up: The sale drops BlackRock’s Bilibili stake belowthe 5% threshold that requires disclosure of any changes in its holdings. That means it won’t need to report any further sales unless the level rises above 5% again.
Take Note: Such stake reductions by a major investor are generally considered a negative signal, possibly showing a lack of optimism in a company’s prospects.
Digging Deeper: Founded in 2009, Bilibili has consistently lost money since its 2018 listing on the Nasdaq, though its loss narrowed last year on improving efficiency. In the first half of this year, the popular video website operator’s revenue increased by 13.7% to 11.8 billion yuan ($1.66 billion), with its adjusted net loss narrowing by 64.3% to 710 million yuan. The company said it will further invest in its commercialization capabilities in the second half of this year to better monetize its large subscriber base, but did not say when it expects to become profitable.
Market Reaction: Bilibibi’s Hong Kong sharesfell on Monday, closing down 5.6% at HK$113.90 by the midday break. The stock now trades in the middle of its 52-week range.
Au
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