(Yicai) March 22 -- Bilibili’s shares plunged after Alibaba Group Holding reportedly sold almost USD360 million of stock in the Chinese video streaming platform.

Bilibili [HKG: 9626] finished 9.4 percent down at HKD86.75 (USD11.09) a share in Hong Kong today. In pre-market trading in New York, its stock [NASDAQ: BILI] was 2.2 percent lower at USD10.96 as of 6.14 a.m. local time, after sliding 8.8 percent yesterday.

Alibaba sold 30.85 million of Bilibili’s American depositary receipts for USD11.60 apiece, a 5.5 percent discount on its closing price on March 20, for a total of USD357.8 million, Bloomberg News reported yesterday, citing people familiar with the matter.

Alibaba’s capital management goals lay behind the sale, a source at the Hangzhou-based firm e-commerce giant told China Securities Journal. It will not affect cooperation between the two companies, with Alibaba's businesses continuing to strengthen ties with Bilibili across various domains, the person added.

In 2019, Alibaba bought 13.6 million of Bilibili ordinary shares and 10 million of its American depositary shares, or about 8 percent of the Shanghai-based firm's total share capital. ADSs are the actual underlying equity that ADRs represent.

Editor: Martin Kadiev