Bilibili’s booth is pictured during Yangtze River Delta International Cultural Industries Exhibition 2019 at the National Exhibition and Convention Center on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Group | Getty Images

GUANGZHOU, China – Shares in Chinese video and games company Bilibili opened lower on Monday’s first day of trading in Hong Kong.

The Nasdaq-listed Chinese tech company raised around $ 2.6 billion after valued its shares at Hong Kong $ 808 (about $ 103) last week.

Bilibili stock opened at $ 790 Hong Kong, down 2.2%. They extended those losses to a daily low of Hong Kong $ 753, nearly 7% less than the offer price. At around 1:41 p.m. local time, Bilibili shares traded at Hong Kong $ 780, down 3.4%.

Bilibili is already listed on the Nasdaq in the USA. This was the secondary listing when the company issued shares on another exchange. In contrast to initial public offerings, where companies issue shares for the first time, secondary listings usually do not experience large price movements on the first day.

A number of US-listed Chinese stocks have had secondary listings in Hong Kong, including Alibaba and Baidu. Persistent tensions between Washington and Beijing threaten to affect foreign companies listed on Wall Street.

Last week, the US Securities and Exchange Commission passed law that could increase auditing requirements for Chinese companies and give authorities the power to delist certain companies that violate the regulations.

A second listing could be a hedge against delisting.

Bilibili’s Hong Kong debut also comes as Chinese tech stocks sell out. Last week, some of the biggest double-listed names lost billions of dollars in value in a matter of days.

Not only are these companies at risk of delisting in the United States, but they are also struggling with increased government controls at home. This has weighed on investor sentiment towards Chinese tech names.

Bilibili makes money by playing mobile games and selling virtual gifts to users who then pass them on to their favorite live streamers. US-listed stocks are up over 300% in the past 12 months.