Smartphone maker Xiaomi debuts on Hong Kong stocks

Smartphone maker Xiaomi debuts on Hong Kong stocks

Xiaomi faces nearly 5% share fall in Hong Kong trading debut, indicating a disappointing pricing and a slow start in mainland China.

At the same time, one of WeDoctor's strongest rivals, Ping An Good Doctor, which is backed by Chinese insurance giant Ping An Insurance Group, has shed about 18 per cent in share prices since its debut on the Hong Kong bourse in May.

Xiaomi's shares were trading at 16.32 Hong Kong dollars (about $2.08) Monday morning, compared with their offering price of HK$17.

"Although the macroeconomic conditions are far from ideal, we believe a great company can still rise to the challenge and distinguish itself", he said in a speech at the listing ceremony.

The shares touched a low of HK$16.50 in opening deals on Monday.

By contrast, China Literature Ltd, the e-book arm of Tencent Holdings, late a year ago raised $1.1 billion in its Hong Kong IPO amid heavy demand, with the retail portion being 625 times oversubscribed. Analysts said the company had been weighed down by investor concerns about its hefty valuation on the back of an unfolding US-China trade war that poses a huge threat to China's technology companies, as they could find it harder to acquire core technologies from a more hawkish Trump administration.

More news: France's route to the World Cup final
More news: Many injured as plane crashes in S Africa
More news: If Trump challenges the constitutional order, will Kavanaugh defend it?

Shares of some other tech-related companies that floated recently have been weak in Hong Kong.

Asked if the low pricing of some technology firms including Xiaomi will weigh on upcoming IPOs, Hong Kong stock exchange Chief Executive Charles Li said: "We can not put a brake". It's open to everybody...

"No matter how you look at it, it's too expensive for me", said Francis Lun, chief executive officer at brokerage GEO Securities, drawing comparisons between the price-to-earnings ratio of Xiaomi and Apple. But in a surprise move last month, it postponed its mainland share offering.

Xiaomi argued that it should receive a higher valuation than other hardware makers because of the internet services - such as music and video streaming apps - it offers with its devices.

"We are an internet company and from Day 1 we have set up a weighted voting rights structure with dual-class shares", he added. "Without the innovation of Hong Kong's capital markets, we wouldn't get a chance to go public in Hong Kong", he said.

Chinese e-commerce site Alibaba raised $25bn in NY in 2014.

Related Articles

  • President Trump grants 2 full pardons

    President Trump grants 2 full pardons

    Led by Ammon Bundy, protesters occupied the Malheur National Wildlife Refuge from January 2 to February 11, 2016. The Hammonds could have faced less than a year in prison under a plea offer they declined, she said.
    How to use USB Restricted Mode on your iPhone or iPad

    How to use USB Restricted Mode on your iPhone or iPad

    Apple's bug fix updates for iOS, macOS, watchOS, and tvOS have been in beta since the last minor updates were released in May . Most USB accessories, such as Apple's Lightning-to-USB 3 Camera Adapter , can disable the countdown timer, he claims.
    Jack Wilshere is like Lionel Messi Kylian Mbappe - Arsene Wenger

    Jack Wilshere is like Lionel Messi Kylian Mbappe - Arsene Wenger

    Michail Antonio is one of three players West Ham United are prepared to offload if the right offer is made, according to a report. Wilshere had been hampered by injuries in recent years and spent the 2016-17 season on loan at Bournemouth.
  • NHC says Chris strengthens into a Category 2 hurricane

    NHC says Chris strengthens into a Category 2 hurricane

    The National Weather Service issued a flash-flood watch for Puerto Rico, warning of thunderstorms and wind gusts. Looks like another storm right next to Tropical Storm Chris , but it won't ever get named and here's why.
    Belgium's golden generation falls short again at World Cup

    Belgium's golden generation falls short again at World Cup

    Of the tournament's star players, Romelu Lukaku has performed as strongly as we expected him to. Paul the psychic octopus famously predicted the outcome of several games at the 2010 World Cup .
    Netflix Debuts

    Netflix Debuts "Smart Download" Feature As Boost For Binges

    The streaming service launched the Download feature in 2016, making it possible for customers to watch shows and movies on the go. The feature is now available on Android phones and tablets running the latest iteration of the Netflix application.
  • LeBron James Officially Signs Contract With Lakers

    LeBron James Officially Signs Contract With Lakers

    He said: "He loves to compete and is an awesome leader who is about winning and making sure that his teammates are successful". Presumably, a lot of people in Los Angeles were already big fans of pizza, thanks to pizza being delicious as heck.
    Thai cave rescue: Boys in quarantine at hospital unable to see family

    Thai cave rescue: Boys in quarantine at hospital unable to see family

    Heavy rain soaked the area overnight, increasing the risks in what has been called a "war with water and time" to save the boys . The rescued kids are now in the hospital, where they should receive the proper care before being released to their families.
    Kavanaugh's paper trail becomes central to nomination fight in Senate

    Kavanaugh's paper trail becomes central to nomination fight in Senate

    By fall, the nomination may turn on a handful of senators who will be under enormous pressure ahead of the midterm elections. In the case decided Monday that had to do with attorneys' fees, there would be no majority if Kavanaugh were to withdraw.
  • Umtiti header sends streetwise France into World Cup final

    Umtiti header sends streetwise France into World Cup final

    Belgium will be without Thomas Meunier for the first time in the tournament, as the PSG midfield has also picked up a suspension. Benjamin Pavard was slipped through by a fine Mbappe ball, but Courtois stuck out a leg and deflected his shot wide.
    Trump enjoys 'suspense' ahead of Supreme Court announcement

    Trump enjoys 'suspense' ahead of Supreme Court announcement

    Conservative and liberal interest groups are poised to spend tens of millions of dollars in advertising and grass-roots activity. In addition to protesting Trump's nomination, they argued that Democrats have not done enough to protect the liberal progress.
    Trump Goes to Europe: Performing Triage

    Trump Goes to Europe: Performing Triage

    In addition to stating that his meeting with Putin could be his "easiest" during his European trip, Trump also wouldn't say whether he considered the Russian leader a friend or foe .