Xiaomi shares have recently shown the worst performance among Chinese tech companies listed in Hong Kong, Bloomberg reports. Relative to the September peaks, the stock prices have decreased by more than 30%.
Xiaomi's shares have quickly transformed from market favorites to the worst performers among Chinese tech stocks in just a few months, Bloomberg reports, citing market data. According to the agency, the rapid recovery of the company's stock prices is hindered by issues in the smartphone and electric vehicle markets.
Until June, Xiaomi's shares experienced a surge that pushed the company's market capitalization to $200 billion. However, this growth has dissipated: in less than two months, relative to the September peaks, the shares lost over 30% in value and became the worst performers in the Hang Seng Tech index — the technology sector index of the Hong Kong Stock Exchange. As of November 18, Xiaomi's shares fell by 2.8% to HKD 40.78 ($5.2).
Meanwhile, Xiaomi is trying to ramp up electric vehicle production to fulfill orders. Given the issues with production capacities, there are concerns that car deliveries and, consequently, revenue may not be as high as investors hoped, noted Aberdeen Investments fund manager Sin-Yao Ng.
Investor interest in Xiaomi has also been affected by concerns about the state of the Chinese economy and fierce price wars in the consumer sector, Bloomberg adds.
