Third went: Xiaomi stocks fell by almost 20% in three days

In just three days of trading on the exchange capitalization Xiaomi declined by more than $ 6 billion. This drew the attention of Bloomberg. Reducing the cost of Chinese companies was due to the fact that shareholders have begun to get rid of its securities. To date, to the holders of shares of Xiaomi was banned to sell them for a six-month moratorium declared after the procedure and the IPO of the company on the stock market.

As of 10 January 2019 the company’s shares fell by almost 17% to 9.9 Hong Kong dollar. This is a serious downfall, which lately have also been Apple, Samsung and LG. However, in the case of these companies the reason for the decline in value of securities was the decline in sales, as reported by their guide, while the one in stock Xiaomi investors decided to get rid of to hit invested in the period of initial offering money.

Why shares fell Xiaomi

But there is another, deeper, version. Goldman Sachs analysts believe that the decline in the value of shares Xiaomi was mainly due to the reduction in profits. Reasons were aggressive actions by Huawei, which, in contrast to Xiaomi continues to increase its share of the global smartphone market, whereas competing solutions use significantly less demand.

Industry experts called initial public offering (IPO), which Xiaomi held last summer, one of the most bloated over the past year. Many analysts seriously believe that after an exit on stock market capitalization will grow to $ 100 billion. This obviously was an exaggeration, because at the moment the capitalization Xiaomi is barely 30 billion.

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