One of the reasons that has been floated for Xiaomi's slow start is that investors are generally unsure about the company because of its uniqueness. The stock was at HK$16.88 after the midday break, while the main Hong Kong stock market index was 1.7 percent higher.
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Beijing-based Xiaomi is the first firm in Hong Kong to trade with the controversial dual-class structure since listing rules were overhauled to allow weighted voting rights for different sets of shareholders.
Xiaomi founder, Chairman and CEO Lei Jun (2nd R) attends the listing of the company at the Hong Kong Exchanges in Hong Kong, China July 9, 2018. It later expanded into computers, TVs and home appliances. Instead, the current valuation of $46 billion essentially means the company's value remains unchanged from its last fundraising round in 2014.
"The market environment is getting conservative. Xiaomi's self-positioning as an internet company also needs some convincing", he added.More news: Eight rescued Thai boys in good health, ask for chocolate bread
And on Monday it ended down 1.18 percent at HK$16.80, though that was much better than in mid-morning trade, when it was briefly down nearly six percent.
On Monday, the Xiaomi President and co-founder, Lin Bin, told to CNBC that, "I think short-term stock price is mostly dictated by market conditions".
Xiaomi struggled in its debut on the Hong Kong stock market Monday morning, with its shares falling by almost 6 percent. It is also the first under the city's new rules permitting dual-class shares, common among USA tech firms, in an attempt to attract tech sector floats.More news: Wimbledon 2018: Roger Federer cruises into last eight
The share performance of Xiaomi is a key test of investor sentiment for what is expected to be a packed initial public offering (IPO) calendar in the coming months. Goldman Sachs Group Inc., Morgan Stanley and CLSA Ltd. are leading Xiaomi's IPO as joint sponsors.