Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Sluggish Stocks Deepen Disappointment for Xiaomi

By Hou Qijiang, Qin Min and Mo Yelin / Jul 30, 2019 12:52 PM / Business & Tech

Photo: VCG

Photo: VCG

Xiaomi was a big disappointment when investors valued it at just $54 billion following its first trading day in Hong Kong last July — far below the $100 billion some had expected for the world’s No. 4 smartphone maker.

One year later, that disappointment has only gotten deeper as Xiaomi struggles with a sluggish stock performance that shows no sign of easing.

Xiaomi’s shares plunged in January when a six-month lockup period ended, wiping out $14 billion in market value. The stock now trades at around HK$9 ($1.15) — just over half of its listing price of HK$17 — with a market value of $27.5 billion.

Xiaomi has been dogged by stiff competition in a global smartphone market that has contracted in six consecutive quarters following years of breakneck growth. Typical of recent trends, shipments fell 6.6% in this year’s first quarter, according to industry tracker Canalys.

Read the full story on Caixin Global later today.

Contact reporter Mo Yelin (yelinmo@caixin.com)

Related: Apple, Xiaomi Sales Shrivel in China’s Shrinking Smartphone Market

Share this article
Open WeChat and scan the QR code