FAST NEWS: BlackRock cuts Bilibili H-share stake below 5%

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 below the 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 shares fell 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.

Translation by A. Au

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