Shares In China's Xiaomi Dip On Hong Kong Debut 09 July 2018

Shares in Chinese smartphone giant Xiaomi fell on their Hong Kong debut Monday but they managed to bounce back from an early plunge, following a long-awaited initial public offering overshadowed by China-US trade tensions and falling global markets.

Hong Kong, (UrduPoint / Pakistan Point News - 9th Jul, 2018 ) :Shares in Chinese smartphone giant xiaomi fell on their Hong Kong debut Monday but they managed to bounce back from an early plunge, following a long-awaited initial public offering overshadowed by China-US trade tensions and falling global markets.

The firm sank almost six percent to HK$16 at one point -- from an IPO price of HK$17, which was already at the low end of its expected range -- before clawing back to end the morning at HK$16.98.

Even before public trading started confidence was low, with investors selling at a discount on the unofficial "grey market" last week, Bloomberg news reported.

Despite being one of the most anticipated Chinese technology IPOs this year, Xiaomi saw a disappointing valuation of US$54 billion, well below its ambitious US$100 billion target.

Founded in 2010 by entrepreneur Lei Jun, Xiaomi has grown from a start-up in Zhongguancun -- China's "Silicon Valley" -- to become the world's fourth-biggest smartphone vendor at the end of last year, according to International Data Corp.

Lei has described Xiaomi as a "new species" of company with what he describes as a "triathlon" business model combining hardware, internet and e-commerce services. Its products range from smart home gadgets like air purifiers to non-tech items such as pillows and ballpoint pens.