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Why were Xiaomi's shares plummeting?

From Tuesday, Xiaomi's shares on the Hong Kong stock market began to fall sharply. Xiaomi Group has lost more than 14 billion of market value. Such rapid movements do not come from nowhere. There must always be a factor that triggers it, the question is how soon we will find out about it and whether we will be able to respond quickly enough.

Why were Xiaomi's shares plummeting?

Why were Xiaomi's shares plummeting?

On Wednesday, the six-month blockade of stock sale after the debut on the stock market ended. During the 6 months, some of the employees who received shares and shareholders could not sell their shares and it was just this Wednesday. This resulted in a sharp decline in the company's value on the stock exchange. Let me remind you that Xiaomi debuted with the value of 17 HKD shares, and on Wednesday the value fell to 9,78 HKD.

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Also on Wednesday, CEO Lei Jun signed a new agreement with shareholders of the company, according to which they can not sell shares for 365 days. That is why there is a chance that the situation may be repeated next year. If you are a small holder of the .1810 stock it may be worthwhile before the end of the contract to sell shares to buy them back for a lower price. When buying Xiaomi shares, I do not pay much attention to the price, I buy them regularly to diversify the price. I treat it as a long-term investment because I believe in the company's potential.

After a hot period associated with unblocking the stock sale opportunities, the price is slowly reflecting from the historical bottom and goes up. Currently, the price of Xiaomi Corp shares is 10,34 HKD.

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