Deals
Xiaomi Sinks After Billions of Shares Are Unlocked for Sale
- Smartphone maker has dropped 39 percent from listing price
- Bearish bets increasing as short-selling turnover surges
This article is for subscribers only.
Many Xiaomi Corp. investors, who could only watch as the stock shed $14 billion in market value, are now able to join in on the selling.
Expiring Wednesday was the six-month lockup period that followed the company’s Hong Kong debut, during which some employees and cornerstone investors were banned from disposing of their allocated shares. It’s been painful: Xiaomi has dropped to HK$10.34 from a listing price of HK$17, losing another 6.9 percent Wednesday on almost seven times its average volume of the past three months.