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Opinion
Nisha Gopalan

Put a Value on Xiaomi, Then Subtract Some

A dual-class share structure poses significant risks for investors.

Class action lawsuits don't exist in Hong Kong. Investors should remember that.

Class action lawsuits don't exist in Hong Kong. Investors should remember that.

Photographer: S3studio/Getty Images

Whatever you think Xiaomi Corp. might be worth, it’s probably less.

The Chinese smartphone maker is set to be the first prospective listing to take advantage of looser Hong Kong rules that allow dual-class stocks. With a valuation anywhere between $60 billion to $100 billion, it’s also on course to be the world’s biggest float since Alibaba Group Holding Ltd.