Xiaomi shares fell sharply in price

Xiaomi shares fell sharply in price

The share price of the Chinese Corporation Xiaomi, founded in April 2010 and is currently one of the four largest smartphone manufacturers in the world, went down 13% at the opening of trading on the Hong Kong Stock Exchange.

This happened after the United States added the company to its blacklist. The reason for inclusion in the list was the suspicion of the manufacturer’s links to the military industry of the PRC. According to chinadaily.com,representative of the Chinese Foreign Ministry Zhao Lijian noted that the corporation has already made an official statement on this matter.

The address of the company’s management emphasized that Xiaomi is neither affiliated nor controlled or has links to the military industry, as well as it is not a military company and will take all necessary measures to protect the interests of its shareholders in response to US sanctions.

However, experts predict that the company will have a decline in sales and profits not only due to the decision of the United States, but also due to an intense competition with Huawei and a slowdown in the smartphone sales market in China.

In 2018, the corporation conducted an initial public offering of its shares on the Hong Kong Stock Exchange. Over the past year, their value increased by 180%.