China's smartphone giant Xiaomi recedes its debut in Hong Kong

China's smartphone giant Xiaomi recedes its debut in Hong Kong
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AFP / File
/ Philip FONG

Chinese smartphone giant Xiaomi pulled back on Monday for its debut on Hong Kong Square, a long-awaited IPO that coincides with the beginning of a trade war between China and the United States. United States.

The title started around $ 16.60 Hong Kong, down from $ 17 per share ($ 2.16) set for the IPO, plunging even a 5.9% time, at 16 Hong Kong dollars.

According to the Bloomberg financial agency, Xiaomi is valued at around 50 billion dollars, far behind the ambitious target of 100 billion dollars posted last year

Even before the start of the IPO, investors had been quite wary, selling off last week on an unofficial "gray" market, says Bloomberg.

Xiaomi originally hoped to rise the Stock Exchange Hong Kong and Shanghai, in two separate introductions, totaling US $ 10 billion: this would have been the biggest introduction since that of Chinese e-commerce giant Alibaba in New York in 2014, and thus would have valued the company around 100 billion dollars.

In the end, Xiaomi is introduced first in the Hong Kong place.

This report, as well as the doubts of investors on the sustainability of its model of are among the factors that explain the decline of the title, say badysts.

"Nothing can help because the atmosphere is not good at the moment," Judge Dickie Wong, an badyst at Kingston Securities. "Most of this year's IPOs have not been so profitable," he said, adding that there would be no reversal of the situation before the introduction to Shanghai.

Founded in 2010, the world's fourth-largest maker of smartphones has seen tremendous growth thanks to its initial recipe of offering high-end yet affordable devices, slashing production costs and selling them directly online.

Even though the group achieves ambitious breakthroughs in a few emerging markets, particularly in India, it still flows the overwhelming part of its production in China, where he was a time leader in the smartphone market … before undergoing sharp competition from local manufacturers to cheaper products, Oppo and Vivo.

And while it is garnering growing revenues through online advertising and video games, nearly three-quarters of its revenue is still generated by the sale of 'appliance Smartphone, but also a wide range of connected objects.

This IPO comes at a time when commercial hostilities were declared between Washington and Beijing.

Beijing seized the World Trade Organization on Friday ( WTO) to challenge the entry into force of US tariffs of 25% on 34 billion Chinese imports, accusing the Trump administration of being responsible for triggering "the biggest trade war in economic history".

09/07/2018 08:14:33 –
Hong Kong (AFP) –
© 2018 AFP