Xiaomi made a nasty begin to its market debut in Hong Kong on Monday.
In morning buying and selling, shares within the Chinese language smartphone maker sank as a lot as 5.9% from their itemizing worth, which was already at the bottom of the range the corporate had sought.
Xiaomi’s IPO raised $4.7 billion at a valuation of about $54 billion, far decrease than the big numbers that had been reported earlier within the yr.
Its shares fell Monday despite the fact that the broader Hong Kong market was up greater than 1%.
Xiaomi’s buying and selling debut comes at a time when international inventory markets have been roiled by the escalating commerce conflict between the US and China. The dispute has its roots in American issues about China’s tech ambitions and its big commerce surplus with the US.
Shares in Hong Kong and Shanghai have taken heavy hits. Earlier than Monday, Hong Kong’s benchmark index had fallen greater than 10% from early June.
Xiaomi CEO and co-founder Lei Jun acknowledged the unlucky timing in remarks on the Hong Kong inventory trade on Monday morning.
“At this essential second in Sino-US commerce relations, the worldwide capital markets are in fixed flux,” he mentioned.
“Though the macroeconomic situations are removed from ultimate, we imagine an excellent firm can nonetheless rise to the problem and distinguish itself,” Lei added.
Xiaomi has additionally confronted questions from analysts over its means to extend revenue margins sooner or later, provided that a lot of its smartphone gross sales are on the decrease finish of the market.
Xiaomi’s major enterprise is telephones, however it additionally sells a spread of different internet-connected units, together with laptops and even sensible rice cookers. Most of its gross sales are in China, however it’s rising aggressively in different international locations.
CNNMoney (Hong Kong) First printed July 8, 2018: 9:28 PM ET