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Xiaomi puts down disappointing stock market debut

Xiaomi puts down disappointing stock market debut
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Christian Boas

Chinese smartphone maker Xiaomi made a disappointing debut on Monday in Hong Kong on Monday. The stock fell 2.9 percent at the start of trading. Over time, the paper reached a low of 16.50 Hong Kong dollars at an issue price of 17.00 Hong Kong dollars. Xiaomi was only able to hit his shares at the lower end of the price range, which was up to 22.00 Hong Kong dollars.

4.72 billion dollars
The world’s fourth largest smartphone producer released $ 4.72 billion on its IPO. The transition to the trading floor came at a difficult time. The smoldering trade dispute between China and the US pushed Hong Kong’s stock index down 6.5 percent in June, down 5.8 percent since the start of the year. The IPO of Xiaomi is seen as a sentiment barometer for other candidates such as China Tower, the world’s largest mobile phone mast operator, and the online platform operator Meituan Dianping.

In 2014, Chinese Amazon competitor Alibaba had taken nearly $ 22 billion on its Wall Street debut. The Hong Kong stock market has recently introduced new rules to attract tech companies. With Xiaomi now grabbed one of the most popular corporations of the People’s Republic, which not only produces mobile phones but also home appliances such as air purifier or rice cooker, but is also active in the market for online advertising.

Red numbers
Xiaomi wrote last year deep red numbers: The loss totaled the equivalent of 5.75 billion euros. By contrast, sales rose by 67.5 percent to 15 billion euros. Xiaomi attracts customers with comparatively cheap smartphones, putting Samsung Electronics and Apple under pressure. Last year, the Chinese doubled their sales and became the world’s fourth largest supplier of smartphones. For example, Xiaomi benefited from growth in India, more than offsetting the slowdown in demand for smartphones in many places. (Reuters)

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