Phone maker Xiaomi falls then rises in Hong Kong debut

Phone maker Xiaomi falls then rises in Hong Kong debut

Trading on Monday opened at 16.60 Hong Kong dollars ($2.11) per share, below Xiaomi's offering price of 17 Hong Kong dollars ($2.17).

Its shares touched a low of HK$16 in opening deals.

Selling phones into overseas developed markets might be a more realistic goal, given Xiaomi's growing credibility with affordable but reliable devices, than building a full-fledged internet content and services wing. At midday, the stock staged a recovery from HK$16 (£1.53) to HK$16.96 but was still below its debut price of HK$17. The dispute has its roots in American concerns about China's tech ambitions and its huge trade surplus with the United States.

"Trading below the issue price suggested that investors still felt the valuation of the stocks was relatively high compared with (fellow Chinese giant) Tencent and Apple", Linus Yip, chief strategist at First Shanghai Securities, told Reuters. In the end, it had to settle for a more modest $54 million valuation as it raised $4.7 billion from the IPO. Before Monday, Hong Kong's benchmark index had fallen more than 10% from early June.

"At this critical moment in Sino-US trade relations, the global capital markets are continuously changing", he added.

Giant crocodile captured in Australia to stop it going to town
Saltwater crocodiles, referred to as salties, are a common fixture of north Australia and kill an average of two people a year. The 4.7m beast was found in a trap downstream from the northern outback town of Katherine after first being spotted in 2010.

US Senate Majority Leader Mitch McConnell praises Trump's SCOTUS pick
Court of Appeals for the Seventh Circuit, she was pressed about the impact her Catholic religious beliefs have on her decisions. That gave Trump his another chance to make a lasting impact on the Supreme Court and to give conservatives a 5-4 majority.

UK: Woman dies following exposure to deadly nerve agent
It also emerged officers have found a red Ford Transit van which Mr Rowley travelled in with three other men before falling ill. But tests by the Porton Down military research center showed they had been exposed to Novichok .

Lei Jun also said, "Without the innovation of the Hong Kong capital markets, it would be hard for us to have a chance to list publicly in Hong Kong". The market is always open.

"We are an internet company and from Day 1 we have set up a weighted voting rights structure with dual-class shares", he added. That's "as investors get more cautious about where to put their money given the prevailing trade tensions and several IPO flops recently".

Global stock markets mostly rose Monday as the British government appeared to turn toward a more trade-friendly version of Brexit and as investors monitored the escalating trade standoff between the USA and China.

Xiaomi's lukewarm showing marks a blow for a smartphone maker with designs on expanding its global footprint and transforming from a low-margin hardware company into an Internet services player in the mold of Apple Inc.

Still, the performance of Xiaomi was seen as a key test of investor sentiment for what is expected to be a packed IPO calendar in the coming months. It is also the first under the city's new rules permitting dual-class shares, common among US tech firms, in an attempt to attract tech sector floats. The company is also making waves in Europe, where after less than two years in the market, it has become the fourth biggest smartphone seller.

Related Articles

  • Thai cave rescue: Sisters turn cave heroes into cartoon menagerie

    Pearce said Harris had "given his all, his family have given the support and we've given the support as well as an organization". Rescue mission chief Narongsak Osottanakorn said the boys were just being children when they got lost and no-one was to blame.
    Erik Jones earns a victory at Daytona Speedway

    Erik Jones earns a victory at Daytona Speedway

    He likely didn't earn a lot of fans on social media or from his fellow competitors in the Monster Energy NASCAR Cup Series garage. Kennington were the final cars on the lead lap. "Oh boy, how 'bout that race boys and girls?" "That was something else, man".
    Nadal survives thriller to down Del Potro in quarter-finals

    Nadal survives thriller to down Del Potro in quarter-finals

    Del Potro raised his game again, though, claiming his third tie-break success of the match to book his date with Nadal. And Nadal reiterated his respect for Del Potro in his own post-match interview.
  • Americans in United Kingdom  warned to 'keep a low profile' during Trump's visit

    Americans in United Kingdom warned to 'keep a low profile' during Trump's visit

    The abiding image of that visit was Trump taking May's hand to help her down the steps of a White House colonnade. He warned , with rest days cancelled, the health of officers could be affected.
    Greece To Expel, Ban Russian Diplomats

    Greece To Expel, Ban Russian Diplomats

    Kathimerini claims that the Russian side tried to intervene in the Balkans issues the Greeks regard as particularly sensitive. It marks a rare downturn in diplomatic relations between Athens and Moscow, who have shared close ties for decades.
    PayPal tells woman her death violated account policies, apologises

    PayPal tells woman her death violated account policies, apologises

    According to a report by The Next Web , Lindsay Durdle's widower Howard Durdle wrote about the ordeal on Facebook and Twitter. In other words, PayPal had sent a threatening letter to Mrs Durdle telling her that her death was in breach of its policies.
  • Deschamps reveals why France beat Belgium in semi-final clash

    Deschamps reveals why France beat Belgium in semi-final clash

    This meant that as Chadli pushed forward, spaces appeared for France's Blaise Matuidi to break through into the box. Early in the second half, Les Blues got a corner and it was swung towards the near post by Antoine Griezmann .

    Jimmy Kimmel calls out Donald Trump's 'lie' about their relationship

    I like to greet the guests on the stage. "I feel dumb saying hello to them and then saying hello to them again 10 minutes later". I don't even think he'd deny it, ' he told the crowd at the SC rally on June 26.
    Exhausted  and battered, Croatia reaches its 1st World Cup final

    Exhausted and battered, Croatia reaches its 1st World Cup final

    France has been one of the most complete sides in the tournament , topping Belgium in the semifinal round. Hundreds of fans add to the surroundings, amidst the cooling temperature of the evening.
  • Pickford has made 'rare saves' in England run - Campos

    Pickford has made 'rare saves' in England run - Campos

    The Liverpool FC midfielder is now on duty with his national team in Russian Federation as he bids to try and help the Three Lions win the World Cup for the first time since 1966.
    Facebook BROKE LAW in personal data controversy, says watchdog

    Facebook BROKE LAW in personal data controversy, says watchdog

    Facebook "will get a chance to respond to the proposed penalties before the ICO releases a final decision", Bloomberg reports .
    TV viewers prioritising World Cup over Wimbledon

    TV viewers prioritising World Cup over Wimbledon

    I was out and about around the grounds and you could tell when England had scored and it was lovely, it was wonderful. The players [at the World Cup] are going to look up in the crowd and not understand what's going on at Wimbledon!