[ad_1]
A woman is talking on her mobile phone in front of a Xiaomi advertisement in Beijing. Shares of Chinese giant Xiaomi smart phones fell nearly 6% in Hong Kong on Monday, a long-awaited IPO by the beginning of a US-China trade war and the bearish sentiment of investors. AFP photo
HONG KONG: Shares of Chinese giant Xiaomi smartphones fell on their debut in Hong Kong on Monday, but they managed to bounce back after an initial public offering for the long-awaited savings by Sino trade American
The firm sank by nearly 6 percent to 16 Hong Kong dollars at one point – an introductory price of 17 Hong Kong dollars, which was already at its lowest level – before resuming in the morning Even before public trading began, confidence was low, with investors selling at a lower price than the unofficial "gray market" last week, reports Bloomberg News,
. Xiaomi had a disappointing US $ 54 billion valuation, well below its ambitious target of US $ 100 billion.
Founded in 2010 by the entrepreneur Lei Jun, Xiaomi went from Zhongguancun's start-up in China to Silicon Valley According to International Data Corp., Lei described Xiaomi as a "new species" of the world. company with what he describes as a "triathlon" business model combining hardware, Internet and e-commerce services.
Its products range from smart home gadgets like air purifiers to non-technical items like pillows and ballpoint pens.
A delay in Xiaomi's plan to launch new Chinese receipts (CDR) in Shanghai, as well as doubts about the durability of its business model were also among the reasons for the lower valuation, according to analysts. The Chinese authorities have designed the CDR program, which allows local companies listed abroad to list them simultaneously, after seeing heavyweights in Alibaba and Baidu technology launch on Wall Street.
The plan aims to help the development of Chinese markets Xiaomi, based in Beijing, is the first company in Hong Kong to negotiate with a controversial double-class structure since the registration rules were revised to allow weighted voting rights for different groups of shareholders.
According to analysts, Hong Kong technology listings have suffered in recent months, which has destabilized investor interest, while escalating trade tensions has made the moment difficult for launching an introduction in the stock market
. Moment … Most of the IPOs listed this year were not as profitable, "said Dickie Wong of Kingston Securities, adding But Mo Jia of Canalys said the IPO was a" must-go for them, even if the current situation is not positive ", as Xiaomi would need the And Jackson Wong, at Huarong International Securities, warned that there could be repercussions on the outlook from the IPO of Hong Kong, saying that a lukewarm start for Xiaomi would suggest a weak appetite for new listings in the city of Hong Kong.
"It would certainly (other companies seeking to be on the list) look for other markets such as New York," he added. – AFP
[ad_2]
Source link
