(Yicai Global) March 29 -- Shares of Bilibili plunged nearly 7 percent intraday during the Chinese video site's first trading day in Hong Kong after its secondary offering which was the third-largest among Chinese companies outside the mainland so far this year.

The video-sharing platform's stock price [HKG:9626] dropped as much as 6.8 percent to HKD753 (USD96.90) intraday. In the afternoon, the price was 2.9 percent down with a HKD298.8 billion (USD38.4 billion) market cap. The company priced its shares at HKD808.

Bilibili's New York-listed equity price [NASDAQ: BILI] rose 1.5 percent to USD97.08 on March 26. But the shares have dropped over 30 percent over the past month.

Bilibili's net proceeds of the listing, which was a third secondary listing among Chinese firms in Hong Kong this year, were HKD19.87 billion (USD2.6 billion). About half of the listing proceeds will be used for content and some 20 percent for research and development, the Shanghai-based company revealed earlier.

Despite the declines, Bilibili's fundamentals, including its positive feedback loop with its strong community and better-than-expected monetization, remain intact, an investment banker close to Bilibili's share offering in Hong Kong told Yicai Global.

The platform expects to have 400 million monthly active users by 2023, a compound annual growth rate between 20 percent and 30 percent, the firm said when releasing its fourth-quarter 2020 earnings report.

The company's high operating costs and marketing expenses are getting too much attention as investors should focus on the platform's stickiness instead, said the investment banker.

After Bilibili, More Secondary Listings

More Chinese companies that are listed abroad are expected to file for secondary listings in China or its special administrative regions.

"I personally believe all China concept stocks with certain scale will file for secondary listings in China," the same banker told Yicai Global. The reason is that firms can avert external risks while attracting new investors closer to their user bases, the person added.

These companies could also consider listing in Hong Kong, as well as the mainland. But the SAR is better in terms of the language, regulatory environment, and the flexibility of using the proceeds, said the banker. However, the mainland may come to mind after, she added.

Editor: Emmi Laine, Xiao Yi