Oct 10, 2018 (China Knowledge) - Affected by the weak market in Hong Kong stocks, Xiaomi shares continued to fall for ninth consecutive days since Sept 24, falling to HKD 13.54 in midday trading on October 8, the lowest since listing. Unless a marketing move gave a boost to the falling share prices. Shares of Xiaomi have fallen more than 16% to HKD 13.78, down nearly 19% from the issuing price of HKD 17 per share, with a market value of HKD 311.1 billion (USD 39.72 billion).
Apart from the Hong Kong stock market, the decline in global technology stocks is also a major cause, shares of Tencent, Alibaba and other companies have fallen to varying degrees.
But Lei Jun, the founder and CEO of Xiaomi, does not seem to be affected by the fall in share prices as he is celebrating the active demand of Xiaomi 8 flagship series at weibo.
Yesterday morning Lei Jun announced that the Xiaomi 8 standard edition has been reduced by RMB 200, to RMB 2499 for sale. Affected by this, Xiaomi shares rose yesterday after opening to nearly 2%.
Not only Lei Jun, but also investors are optimistic about Xiaomi’s long-term development because of its better-than-expected earnings and structural adjustment. In the past month, most of the target prices given by major institutions were higher than the issuance price of HKD 17, and the ratings were mostly "buy" or "increase".
In mid-September, Everbright Securities raised its Xiaomi target price from HKD 15 to HKD 19.6 and gave an "increase" rating based on the piecewise valuation method. After that, Macquarie maintained the "outperform" investment rating of Xiaomi, and the target price of 12 months was RMB 30.
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