Hong Kong has long been a hub for financial markets in Asia, but the recent IPO wave of leading Chinese tech companies is taking it to new heights. Companies like Bilibili, 3B Hong Kong US, JD and Alibaba have all listed on the Hong Kong Stock Exchange (HKEX) in recent months, making them some of the most highly valued stocks on the exchange. In this blog post, we’ll look at these companies and what their listings mean for investors and the Asian business landscape. We’ll also explore why they chose to list on the HKEX and what kind of impact their offerings may have on the region’s economy.
Bilibili 3B Hong Kong US, JD, Alibaba and Others List on Hong Kong Stock Exchange
Bilibili, one of China’s largest online video platforms, has submitted a prospectus for a Hong Kong initial public offering (IPO). The company is planning to list on the Hong Kong Stock Exchange with an estimated valuation of $5 billion.
This comes as a surprise move as Bilibili was previously planning to list on the Nasdaq exchange in the United States. However, it appears that the company has decided to list in Hong Kong due to recent political tensions between the US and China.
Bilibili boasts over 300 million registered users and is particularly popular among millennials. The platform offers a wide range of content, including animation, comics, games, and other user-generated videos.
The company plans to use the proceeds from the IPO to invest in technology and content, as well as for general corporate purposes. The listing is scheduled for March 2018.
Bilibili’s Business Model and User Base
Bilibili, Inc. is a Chinese video sharing website headquartered in Shanghai with offices in Beijing, Hangzhou, and Chengdu. The company was founded on January 2009 by Xu Yi, a former engineer at Google China. The website is known for its wide range of content, including animation, comics, and games.
As of June 2018, Bilibili had over 150 million monthly active users, 60% of which were between the ages of 15 and 24. The majority of Bilibili’s users are located in China, but the website also has a significant number of users from Japan, South Korea, and other Asian countries. In addition to user-generated videos, Bilibili also offers licensed content from Japanese animation studios such as Crunchyroll and Funimation.
Bilibili generates revenue through advertising and paid memberships. Advertising accounted for 78% of the company’s total revenue in 2017, while paid memberships contributed 22%. Bilibili offers two types of paid memberships: VIP memberships and Super Chat memberships. VIP memberships give users access to exclusive videos and discounts on merchandise; Super Chat memberships allow users to purchase virtual gifts that can be sent to other users or used to make donations to charity.
Bilibili’s Competitors in China
Bilibili’s competitors in China are numerous and vary in size, scope, and offerings. The most direct competitors to Bilibili are probably Youku Tudou and iQIYI, both of which are owned by Alibaba Group. Youku Tudou is the largest online video platform in China, while iQIYI is a leading premium online video platform. Other notable competitors include LeTV (now part of LeEco), Tencent Video, PPTV, and56.com. While these platforms all offer online video content, they each have their own unique focus or niche. For example, Tencent Video is focused on providing professional sports content, while 56.com offers user-generated videos.
In terms of market share, Bilibili has been steadily gaining ground on its competitors over the past few years. In 2013, Bilibili had a 2% share of the online video market in China; by 2016, that number had grown to 10%. This is largely due to Bilibili’s strong focus on anime and other niche content that appeals to young people.
Bilibili’s International Expansion Plans
Bilibili announced its intention to list on the Hong Kong Stock Exchange in December 2018, and submitted its listing application in March 2019. Bilibili plans to use the proceeds from the listing to accelerate its international expansion plans.
Bilibili has been aggressively expanding internationally since 2017, when it launched its overseas platform. To date, Bilibili has launched localized versions of its app in Taiwan, Japan, South Korea, Southeast Asia, and the Middle East. In addition to launching localized apps, Bilibili has also opened offices in Singapore, Tokyo, and Seoul.
Bilibili’s international expansion is part of its goal to become a global platform for Chinese-language content. In addition to expanding its reach through localization, Bilibili is also investing in original content production outside of China. In 2018, Bilibili announced that it would invest US$100 million over three years in content production outside of China. So far, Bilibili has invested in several anime titles that have been popular with its users, including “Banana Fish” and “attack on Titan.”
With over 80 million monthly active users as of December 2018, Bilibili is one of the most popular online platforms for young people in China. The company is hoping to tap into the growing demand for Chinese-language content abroad with its international expansion plans.
The Impact of the coronavirus pandemic on Bilibili
The coronavirus pandemic has had a significant impact on Bilibili, a popular video-sharing website in China. The site has been forced to suspend operations due to the outbreak, and its stock price has plummeted as a result.
Bilibili is not the only company to be affected by the outbreak. Numerous other businesses in China have been forced to shut down due to the coronavirus, and the country’s economy as a whole is expected to take a hit.
The coronavirus pandemic has had far-reaching consequences, and it will likely continue to impact Bilibili and other companies for some time to come.
Conclusion
The listing of 3B HK, JD, Alibaba and other sources on the Hong Kong Stock Exchange is a great example of how innovative companies can thrive despite challenging economic conditions. This move could have far-reaching implications for investors in Asia and beyond as these high-profile names bring increased attention to the exchange. With an array of options available, both existing investors and new entrants alike now have access to a wider range of opportunities in which to invest. The future looks bright for those wishing to capitalize on this wave of innovation.
