(Yicai Global) Sept. 30 -- Bilibili’s shares dropped after the Chinese video site operator said its secondary listing in Hong Kong will convert to a dual-primary listing on Oct. 3.

Bilibili [HKG: 9626] fell 2.3 percent in Hong Kong today to close at HKD119.60 (USD15.24), after its Nasdaq-listed stock [NASDAQ: BILI] slumped 5.8 percent to USD15.25 yesterday. Bilibili has fallen by about 76 percent on both markets in the past year.

The Netflix-like platform will voluntarily change its status to a primary listing in Hong Kong, it said in a statement yesterday, without disclosing any reasons for the change. Based in Shanghai, Bilibili debuted on the Nasdaq in March 2018 and completed a secondary listing in Hong Kong in March 2021.

As accounting rules have become tighter for foreign firms that trade on US stock markets, the shares of US-listed Chinese companies have dived in the past year amid delisting worries.

Alibaba Group Holding is another Chinese company listed in the United States that is planning to convert to a dual-primary listing in Hong Kong by December. Nine Chinese firms, including question-and-answer platform Zhihu, online property agency KE Holdings, and electric carmaker Xpeng Motors, already have two primary listings.

After the change, Bilibili is expected to be included in the Stock Connect program between the Chinese mainland and Hong Kong, as well as more equity indexes in the short term, which is conducive to increasing the institutional allocation of shares, Shanghai Securities News cited Zhongtai International analyst Yan Zhaojun as saying today.

The moves by leading companies such as Alibaba may indicate that dual-primary listings are gradually becoming mainstream for Chinese businesses, which should increase turnover in new economy shares in Hong Kong, according to China International Capital.  

But a dual primary listing requires more from a company as the threshold is higher and the firm needs to comply with additional rules, Yan said. Moreover, stock price movements in the two locations will be relatively independent due to different asset pricing logic, the analyst said, adding that the shares are not convertible.

Editor: Emmi Laine, Xiao Yi