1810.HK - Xiaomi Corporation

HKSE - HKSE Delayed Price. Currency in HKD
12.480
-0.420 (-3.26%)
As of 11:03AM HKT. Market open.
Stock chart is not supported by your current browser
Previous Close12.900
Open12.460
Bid12.460 x 0
Ask12.480 x 0
Day's Range12.400 - 12.780
52 Week Range8.280 - 14.000
Volume81,573,283
Avg. Volume197,016,866
Market Cap299.599B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateNov 27, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est17.65
  • Huawei to suffer as coronavirus hammers China phone sales - Counterpoint
    Reuters

    Huawei to suffer as coronavirus hammers China phone sales - Counterpoint

    Hong Kong-based Counterpoint, whose forecasts are widely used in Asia's booming chip and mobile phone industry, said in an outline of its latest report it had cut its estimate for offline smartphone sales in China during the outbreak by 50% and for first quarter sales overall by 20%. From forecasting outright growth of the global market, it said those cuts were likely to mean sales worldwide would now be flat year-on-year in 2020. "Overall, we think the virus will be contained in March.” Tom Kang, Research Director with Counterpoint Research, said.

  • Smartphone maker Xiaomi sees first-quarter coronavirus hit, recovery after
    Reuters

    Smartphone maker Xiaomi sees first-quarter coronavirus hit, recovery after

    Chinese smartphone maker Xiaomi Corp expects a hit to first-quarter sales from the disruption caused by the coronavirus outbreak, but believes demand will bounce back in the second and third quarters, its CEO said on Thursday. Lei Jun made the comments during a launch event for Xiaomi's new Mi 10 flagship line of smartphones, which was livestreamed due to nationwide restrictions on travel and large gatherings. "This year's first quarter smartphone sales will face an impact, but we believe that in the second and third quarters they will strike back," Lei said of the coronavirus impact.

  • Smartphone maker Xiaomi sees Q1 coronavirus hit, recovery after
    Reuters

    Smartphone maker Xiaomi sees Q1 coronavirus hit, recovery after

    Chinese smartphone maker Xiaomi Corp expects a hit to first-quarter sales from the disruption caused by the coronavirus outbreak, but believes demand will bounce back in the second and third quarters, its CEO said on Thursday. Lei Jun made the comments during a launch event for Xiaomi's new Mi 10 flagship line of smartphones, which was livestreamed due to nationwide restrictions on travel and large gatherings. "This year's first quarter smartphone sales will face an impact, but we believe that in the second and third quarters they will strike back," Lei said of the coronavirus impact.

  • Samsung's New Offerings Heat Up Smartphone Market Competition
    Zacks

    Samsung's New Offerings Heat Up Smartphone Market Competition

    Samsung (SSNLF) launches Galaxy S20 series and Galaxy Z Flip to strengthen portfolio and gain competitive edge.

  • Bloomberg

    Alibaba’s China Disconnect Cuts Hong Kong Dead

    (Bloomberg Opinion) -- The decision to exclude shares of China's biggest e-commerce company from a cross-border trading link is a blow to Hong Kong. Is it a punishment, or simple self-interest at work? The answer matters, both for the city’s exchange and for Alibaba Group Holding Ltd.Alibaba can’t be included in the stock connect program linking Hong Kong with the Shanghai and Shenzhen exchanges at present, Bloomberg News reported Tuesday, citing people familiar with the matter. China’s securities regulator has yet to agree to rule changes proposed by Hong Kong Stock Exchanges & Clearing Ltd. that would allow the internet company to participate, one of the people was cited as saying.Granted, the Jack Ma-founded internet giant doesn’t qualify under the stock connect program’s existing arrangements, which exclude companies that have secondary listings with weighted voting rights. These were already in place before New York-listed Alibaba raised $13 billion selling shares in Hong Kong late last year.But exceptions have already been made. In October, China allowed companies with dual-class shares to join the connect, giving investors in the mainland access to Hong Kong-listed technology companies Xiaomi Corp. and Meituan Dianping. Rules can be changed when there is the desire to do so.Clearly, that was the expectation among investors here. The notice on dual-class shares was posted by the Shanghai and Shenzhen exchanges in mid-October and took effect Oct. 28. Three days later, Alibaba was reported to be planning its secondary listing in Hong Kong the following month. The shares started trading Nov. 26.Investors in Alibaba’s Hong Kong stock will have a right to feel short-changed if the shares lose steam as a result. They dropped as much as 2.5% after the Bloomberg News story published, before recovering to close little changed. Alibaba has rallied more than 20% since its debut in Hong Kong, at least partly on anticipation that the stock will draw a wall of money from mainland Chinese investors who wouldn’t otherwise be able to buy.The lack of support for Alibaba to join the stock connect is a severe blow to Hong Kong’s aspirations of marketing itself as the offshore listing venue of choice for Chinese technology companies, in an environment where the U.S. has become increasingly inhospitable and businesses are considering their options. Trip.com Group Ltd. and Netease Inc. are among U.S.-listed Chinese enterprises that are said to be looking at listing in Hong Kong. Bankers have talked of pitching other names including JD.com Inc. and Baidu Inc.The prospect of acquiring an enthusiastic mainland investor base that would help to buoy valuations is a key selling point for those who might be tempted to decamp from a U.S. exchange. If Alibaba — a marquee name with a $578 billion market capitalization — can’t get the nod, what’s the hope for any of the others?More worrying for Hong Kong is what the reluctance may say about China’s support for the city, as it contemplates the hit to its own economy from the coronavirus epidemic. HKEX, after all, is a competitor as well as a partner with the Shanghai and Shenzhen exchanges. If Hong Kong becomes too attractive a venue for China’s leading companies, that may hold back development of the mainland’s markets.In 2018, Hong Kong relaxed its listing rules to admit unprofitable technology companies, competing with the U.S. and making the exchange even more alluring to Chinese hopefuls than the Shanghai and Shenzhen markets. In turn, Shanghai introduced the tech-focused Star Board in July, a Chinese answer to the Nasdaq that accepts money-losing companies with weighted voting rights. After a lively start, the board’s performance has been underwhelming. It has drawn few big names and has thin turnover.All may not be lost. Smartphone maker Xiaomi had been public in Hong Kong for 15 months before it joined the connect, while food-delivery app Meituan had to wait 13 months. HKEX and Alibaba will have to hope this is the slow arm of bureaucracy rather than the cold shoulder. To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Alibaba Blocked From Hong Kong Stock Link to China

    (Bloomberg) -- Investors betting on Alibaba Group Holding Ltd.’s inclusion in a program allowing mainland Chinese investors to buy its shares in Hong Kong could be in for a disappointment.China’s largest e-commerce company, valued at HK$4.56 trillion ($587 billion) in Hong Kong, can’t be included in the stock connect program linking the Asian financial hub with Chinese investors at present, according to people with knowledge of the matter, who asked not to be identified as the discussions are private.The exclusion of companies with secondary listings and weighted voting rights from the program was part of an arrangement agreed to by the mainland and Hong Kong exchanges before Alibaba’s Hong Kong debut last year, the people said. The Shanghai, Shenzhen and Hong Kong exchanges haven’t agreed to make an exception or revise the agreement for Alibaba, though that could change in the future, they said.With the bourses competing to draw the listings of local firms already floated in the U.S., allowing companies in Alibaba’s position into the program would run contrary to Beijing’s ambitions of developing its mainland exchanges, particularly as unrest grips Hong Kong. Other Chinese firms -- among the country’s largest corporations, from JD.com Inc. to Baidu Inc. -- may then be encouraged to also pick Hong Kong, bypassing the Shanghai or Shenzhen bourses.The Hong Kong Stock Exchanges & Clearing Ltd. has proposed changes to the China Securities Regulatory Commission, which hasn’t yet made a decision to revise the previous arrangement, one of the people said.Companies with weighted voting rights and a secondary listing are not currently included in the stock connect and there’s been no precedent for such a move, a Hong Kong Exchange spokesman said in response to questions on the agreement. “We look forward to discussing the potential for this with relevant parties in the future,” he said. “More generally, HKEX is not in the habit of banning things that it considers positive for the market.”Alibaba is not among the current batch of companies to be included in the stock connect, said a separate person, adding that the list will be updated on Feb. 17.Representatives for Alibaba and the Shanghai Stock Exchange declined to comment. Shenzhen Stock Exchange and China’s stock market watchdog, the China Securities Regulatory Commission, didn’t immediately reply to emails seeking comment.Alibaba’s landmark $13 billion secondary listing in Hong Kong last year was in part spurred by expectations that it would attract a vast pool of capital from its home country if included in the stock connect.In the Hong Kong offering, Alibaba preserved its governance structure: Granting a partnership of top executives the right to nominate a majority of board members. That system falls broadly into the definition of having weighted voting rights in Hong Kong.Alibaba’s shares are up about 20% since the November listing, prompting other U.S.-listed technology companies including Trip.com to look at a secondary listing in Hong Kong, people familiar have said. Alibaba fell as much as 2.5% in Hong Kong Tuesday, the biggest drop in two weeks, before paring losses. In the past, China has green-lit companies with weighted voting rights that conducted primary share sales in Hong Kong to join the stock connect program. For example, food delivery giant Meituan Dianping and smartphone maker Xiaomi Corp. joined in late October. Chinese firms with dual class shares started listing in July on Shanghai’s new tech-focused Star board.(Updates with shares)\--With assistance from Kiuyan Wong and Lucille Liu.To contact Bloomberg News staff for this story: Evelyn Yu in Shanghai at yyu263@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Steven Yang in Beijing at kyang74@bloomberg.netTo contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, Jonas Bergman, David ScanlanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Exclusive: Hundreds of Chinese businesses seek billions in loans to contend with coronavirus - sources
    Reuters

    Exclusive: Hundreds of Chinese businesses seek billions in loans to contend with coronavirus - sources

    More than 300 Chinese companies are seeking bank loans totalling at least 57.4 billion yuan ($8.2 billion) to help to soften the impact of the coronavirus outbreak, two banking sources said. Among the prospective borrowers are food delivery giant Meituan Dianping , smartphone maker Xiaomi Corp , ride-hailing provider Didi Chuxing Technology Co, facial recognition start-up Megvii Technology Inc and internet security business Qihoo 360 Technology Co, the sources said, adding that the companies seeking loans were either involved in the control of the epidemic or had been hardest hit. The companies seeking loans in the Chinese capital are likely to get fast-track approvals and preferential interest rates, said the sources, who received copies of two lists of company names sent to Beijing banks by the city government's finance bureau.

  • If the Tech Supply Chain Must Face a Pandemic, Now’s the Time
    Bloomberg

    If the Tech Supply Chain Must Face a Pandemic, Now’s the Time

    (Bloomberg Opinion) -- Setting aside the global health implications, Apple Inc. and its suppliers may have gotten lucky with the timing of the coronavirus outbreak.Not only is this low season for iPhone manufacturing, but the supply chain is the most decentralized it has been in a decade.In 2010, when few people had even heard of Foxconn Technology Group, almost all of the Taiwanese company’s production facilities were in Shenzhen in southern China. The former fishing village, just across the border from Hong Kong, had earned the nickname iPod City for the iconic product made there.Then came a spate of suicides among Foxconn workers that brought the global spotlight to the company, the city and the business model of using China’s migrant workforce to supply global markets. By the time Shenzhen found fame, it had become one of the country’s richest cities.Chinese authorities, seeking to spread the wealth and develop the hinterland, had been urging companies like Foxconn to move inland, but they were reticent. The political pressure brought on by the suicides forced Foxconn’s hand, and the following year it shelled out a record $3.2 billion in capital expenditures, setting up shop 1,000 miles (1,600 kilometers) away in Zhengzhou, Henan Province. The great inland migration was underway. But more than that, the decentralization of Foxconn, and with it the global technology supply chain, was to become an irreversible trend. While Zhengzhou became the largest iPhone manufacturing hub, the broader impact of that shift was to ensure that no single site truly dominated electronics assembly. Today, Shenzhen shares the workload of supplying to Apple with more than 30 other manufacturing sites around the country. Foxconn, which operates under its flagship Hon Hai Precision Industry Co., also supplies Apple from plants in Texas and Vietnam. It also has sites in more than a dozen countries including Mexico and the Czech Republic for clients including Dell Inc., Sony Corp. and Microsoft Corp.So while Foxconn announced this week that it would quarantine workers returning to its Zhengzhou facility after the Lunar New Year break once production resumes on Feb. 10, it still has dozens of choices. Not all factories will be immediately equipped to assemble iPhones —  some merely make lower-level components — yet the broad array of options means that Apple and Foxconn no longer have all their eggs in the Shenzhen basket. What’s more, China itself is becoming less important to Foxconn, Apple and the broader technology industry. The protectionist policies of Prime Minister Narendra Modi of India have spurred the manufacture of smartphones locally. Beyond the iPhone, which is made in Chennai, Chinese smartphone brand Xiaomi Corp. is among those that are building devices outside of China. Other Taiwan companies — most electronics are made by Taiwanese — have set up shop elsewhere in Asia, with some even bringing production back home.Many blamed, or credited, the U.S.-China trade war spurred by President Donald Trump for companies moving away. That’s only partially true. In reality, dozens of companies had seen the need to reduce reliance on China many years earlier and did so quietly. In fact, by one measure, Foxconn’s China presence peaked eight years ago. Since 2012, its non-current assets in China have declined at least 25%.(1)The biggest winner has been the U.S., which experienced a 10-fold increase in the same figure, mostly due to an influx of investment in 2018 as part of Foxconn’s pledge to expand in America. To be frank, I don’t see iPhones assembled in the U.S. at scale anytime soon, but this decentralization means it’s at least feasible.To be sure, China is still important. In the past decade, more midlevel suppliers such as those that make components like camera lenses and touch-screen sensors are from China. But in many ways this has served to further diversify the supply chain away from the small collection of non-Chinese vendors Apple relied on previously. The result is not only a geographic dilution but a far broader range of vendors for global electronics brands to choose from.As the world grapples with the human and health impact of the Wuhan coronavirus and speculate about its impact on business, the tech supply chain truly is less vulnerable than it has been in the recent past.(1) As of Dec. 31, 2018. Figures for 2019 aren't yet available, but are believed to be lower again.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • No Handshakes at Global Wireless Conference as Virus Spreads
    Bloomberg

    No Handshakes at Global Wireless Conference as Virus Spreads

    (Bloomberg) -- Two smartphone makers canceled events at the world’s biggest mobile technology showcase in response to the coronavirus outbreak, and organizers reinforced hygiene protocol for people still planning to attend.Delegates were warned to avoid handshakes and microphones will be changed for different conference speakers in an effort to avoid infections at MWC Barcelona, an annual event that’s set to draw around 100,000 people from around the world to the Spanish city from Feb. 24 to 27.This year’s conference is supposed to be a launch pad for a renewed push on 5G devices. However, South Korea’s LG Electronics Inc. said it’s withdrawing from exhibiting at the conference because most health experts advised against “needlessly” exposing hundreds of employees to international travel.Shenzhen, China-based ZTE Corp., which makes smartphones and wireless networking equipment, cited difficulties in traveling out of China while virus-containment restrictions are in place, and so it’s canceling its MWC press conference, though it will still send a delegation.The two companies usually occupy two of the largest, most central exhibition zones at the Fira Gran Via venue, and both were expected to contribute to an industrywide push to make the newest generation of networking and devices mainstream this year.ZTE plans to roll out “a wide variety of new 5G devices” and will keep its usual exhibition spot. LG, keen to match compatriot arch rival Samsung Electronics Co., maintains an outsize presence at the show even when it doesn’t launch any major new products, and so its absence this year will be obvious to attendees.MWC brings together wireless and tech industry executives to talk shop and do deals. Crowds of gadget fans roam the vast LED-lit conference halls to check out the latest kit -- from smartphones and tablets to artificial intelligence and robots.The latest hygiene measures were announced on the MWC website by wireless industry lobby GSMA. It had already beefed up medical support at the event and stepped up its disinfection policy for catering areas, entrances and exits and public touch-screens in response to the coronavirus.Other Asia-based companies are closely monitoring the outbreak and may yet alter their plans, however many are sticking to their existing programs.\- Huawei Technologies Co., based in Shenzhen, is considering a range of options which include leaving its current plans unchanged, flying executives from China to Spain early, or even canceling travel plans altogether, said a U.K.-based spokesman.\- Lenovo Group Ltd., parent of Motorola, says its MWC plans are still under discussion.\- Xiaomi Corp. is sending its contingent to Barcelona as soon as possible “and will make necessary adjustments accordingly,” a spokesman said.\- Samsung, Oppo, Microsoft Corp. and MediaTek Inc. representatives all said their companies are preparing for MWC as planned.Read more: Virus Outbreak May Halve China Phone Shipments in First QuarterSeveral major U.S. technology firms, including Qualcomm Inc. and Alphabet Inc.’s Google, are also scheduled to participate and play big roles at this year’s conference.On its website, the GSMA says it “continues to monitor and assess the potential impact of the coronavirus” on its event and has “implemented many measures to help to mitigate the spread of the virus and is continuing to add other actions regularly.”(Updates with latest contingency measures in first and second paragraphs)\--With assistance from Sohee Kim and Gao Yuan.To contact the reporters on this story: Mark Gurman in Los Angeles at mgurman1@bloomberg.net;Thomas Seal in London at tseal@bloomberg.netTo contact the editors responsible for this story: Thomas Pfeiffer at tpfeiffer3@bloomberg.net, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • iPhone Maker Hon Hai Cuts 2020 Outlook After Virus Outbreak
    Bloomberg

    iPhone Maker Hon Hai Cuts 2020 Outlook After Virus Outbreak

    (Bloomberg) -- Hon Hai Precision Industry Co. cut its 2020 revenue outlook after deciding to impose strict quarantines at its main iPhone-making base, a measure to guard against the coronavirus outbreak that may hurt Apple Inc.Hon Hai, which makes the vast majority of the world’s iPhones from the central Chinese city of Zhengzhou, officially resumes production Feb. 10 after an extended Lunar New Year break. But the company said in a statement that workers returning from outside Henan province -- site of its main factory -- will be sequestered for 14 days. Any staff reporting to work who reside within the province itself will be isolated for 7 days.The lost production prompted Hon Hai, known also as Foxconn, to slash its forecast for revenue growth in 2020. The company is now projecting a sales increase of 1% to 3% this year, Chairman Young Liu told Bloomberg News in a text message. That’s down from a Jan. 22 forecast of 3% to 5%, before the epidemic spread around the globe, and lags the 5.4% average of analysts’ projections.The contagion is expected to disrupt Apple’s carefully calibrated production chain centered on China, while dampening consumer demand and overall economic growth. As China’s largest private employer and a key partner to many of the world’s most recognizable consumer brands, Hon Hai has become a high-profile symbol of how the outbreak could disrupt the world’s supply of made-in-China electronics.“Given current market conditions, we are lowering to 1%-3%,” Liu replied when asked about whether Hon Hai will cut its original sales growth forecast for this year.Read more: Apple Suppliers Aim to Resume Full China Production Feb. 10Hon Hai, which makes products for companies from HP Inc. to Sony Corp., said Tuesday it still expects to be able to restart facilities throughout China on schedule. Key suppliers with major Chinese operations such as Quanta Computer Inc., Inventec Corp. and LG Display Co. have also said they would go back to work next week.But while Chinese officials and companies have targeted Feb. 10 as the date to resume work across much of the country, doubts about the timing have grown in recent days as the virus death toll rises, workers find themselves stuck in municipal lockdowns and the transport of people and goods has been hampered.What Bloomberg Intelligence SaysHon Hai’s lower 2020 sales growth outlook of 1-3% vs. 3-5% just a week ago likely reflects the severity of disruption to its operations from the coronavirus outbreak, in our view. The NT$111 billion reduction in sales at the midpoint of the range vs. the prior midpoint is equivalent to one week of revenue, accounting for the extended factory shutdown imposed by the Chinese government.\- Matthew Kanterman, analystClick here for the research.Hong Kong to Quarantine Travelers; Almost 500 Dead: Virus UpdateApple in January issued a wider-than-usual sales forecast to reflect what Chief Executive Officer Tim Cook called “uncertainty” caused by a virus outbreak in one of its most important markets.Smartphone sales -- particularly in China -- are expected to take a big hit from the coronavirus outbreak after government-imposed containment measures snarled logistics and emptied out stores. Hon Hai’s Hong Kong-listed unit FIH Mobile Ltd. makes phones for Xiaomi Corp. and Huawei Technologies Co.Research firms vary in their estimates of how big the shipments drop-off will be, reflecting the still-developing nature of the virus outbreak -- but they agree it will hurt. Strategy Analytics forecasts a 32% decline in Chinese shipments in the first quarter, to 60 million from roughly 89 million shipments a year earlier. Canalys, starting from a similar estimate for 2019, scythes its expectations down to 42.5 million shipments.Hon Hai’s shares stood largely unchanged Wednesday after having slid about 11% since a broader Asian market selloff began in mid-January.Read more: Virus Outbreak May Halve China Phone Shipments in First Quarter\--With assistance from Edwin Chan.To contact the reporters on this story: Debby Wu in Taipei at dwu278@bloomberg.net;Mark Gurman in Los Angeles at mgurman1@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • South China Morning Post

    Allowing China's tech behemoths like Alibaba, Xiaomi to join Hang Seng Index is vital for benchmark stock gauge's future, says boss

    Proposals that would pave the way for China's technology giants to be included in the Hang Seng Index will be vital to maintaining the index's status as the benchmark for Hong Kong's stock market, according to the boss of the company that compiles the gauge.Hang Seng Indexes Company is weighing the feasibility of allowing companies with weighted voting rights, such as the Chinese smartphone maker Xiaomi, and those with secondary listings like the internet behemoth Alibaba Group Holding, to be included, according to a consultation paper published on its website this month. It is also considering capping the weighting of the financial sectors in the key gauge."The Hang Seng Index needs to track the performance of the biggest and the most liquid stocks of the Hong Kong market. If these largest technology giants are the most traded stocks here, but then they are excluded from the Hang Seng Index, it will reduce the role of the Hang Seng Index as a benchmark of the market. This is why we want to make a change," chief executive Vincent Kwan said in an interview.In Kwan's view, the current reform is the potentially most important revamp of the gauge since the inclusion of H-shares " Chinese mainland companies listed in Hong Kong " in 2006. Back then, there were many large H-shares listings, including the big four state-owned banks which floated in Hong Kong between 2004 and 2005, triggering their addition to the benchmark. Compiler opens door for China's tech giants to join Hang Seng stock benchmarkNowadays, there are nine H-share firms included as constituent stocks of the Hang Seng Index, with a combined 25.37 per cent weighting. The top three are China Construction Bank (7.81 per cent), Ping An (5.52 per cent) and Industrial and Commercial Bank of China (4.75 per cent).The index compiler on January 13 issued its consultation paper to seek public feedback about the changes. That will take until mid-March, with the result to be announced in May.While the Hang Seng Index is the most widely quoted gauge of the Hong Kong stock market, it is yet to include the largest stock listed in Hong Kong by market capitalisation, Alibaba Group Holding. The tech giant was worth HK$4.69 trillion (US$603.36 billion) on January 22, or 12 per cent of total market cap in the city. The owner of the South China Morning Post is not qualified to be in the index because it now has a secondary listing in Hong Kong.The index only accepts primary listings because most secondary flotations, such as the insurer Manulife, have tended to generate a low turnover in the market. Hong Kong grabs IPO crown as Alibaba, Budweiser mega listings lift fundsHowever, Alibaba, together with another two dual-class shareholding companies, Meituan Dianping and Xiaomi Corporation, are always among the top five most traded stocks here. The trio had a combined turnover that accounted for 9 per cent of the total on January 22.Tom Chan Pak-lam, chairman of the Institute of Securities Dealers, an association of stockbrokers, supports the idea of adding them to the gauge."Hang Seng Index should represent the largest companies in Hong Kong. There will be more US-listed tech giants returning to list in Hong Kong. If they are large and heavily traded, they should be included in the benchmark index," Chan said.Mark Konyn, group chief investment officer of AIA, said institutional investors also supported the move."The mood has changed among a number of institutional investors globally. Many seem to have to put to one side their governance concerns related to split shares and differentiated voting rights to access new-economy investment opportunities," Konyn saidThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.

  • Bloomberg

    Samsung Fails to Deliver the Expected Sunshine

    (Bloomberg Opinion) -- Samsung Electronics Co.’s earnings report and outlook reflect doom and gloom. Many are surprised. Positive signs from chip rival Taiwan Semiconductor Manufacturing Co. and smartphone stalwart Apple Inc. had fed the belief that the South Korean giant would put the worst behind it. The key takeaway here is that a rising tide doesn’t lift all boats.On the surface, as the one of the world’s biggest technology companies, it might be reasonable to suggest that Samsung ought to benefit from the turnaround enjoyed by major rivals.  In reality, a major reason why Samsung is suffering while others rebound is that the company’s big strengths — memory chips and displays — are precisely the weakest parts of the tech sector right now.Its semiconductor unit posted a 56% drop in operating income for the period and its display business fell 77%. Between them, these component divisions usually contribute half to two-thirds of its profit. TSMC, Intel Corp. and even Advanced Micro Devices Inc. don’t dabble in such commodity products. When things are good in memory and displays, Samsung soars because it’s the world’s largest supplier of both. But when times are bad, like now, it suffers the most. That pain will continue in both divisions this quarter, with executives noting in a conference call that continued weakness in demand will hurt both revenue and profits.Bulls will find positive signs if they want. The memory chip market will surely improve as the year progresses, but heck, it couldn’t get much worse. And the whole world — from TSMC to Intel to Xiaomi Corp. — is betting that a 5G rollout will juice sales across the board. Just because TSMC, Apple and Intel reported solid results and gave optimistic outlooks doesn’t mean that every company in the sector is set to benefit from a turnaround in hardware. AMD, Intel’s chief competitor in computer chips, provided guidance just a day earlier that could be characterized as a bit light. Its shares fell 6%, their largest decline since August.Samsung’s 1.5% miss on net income was a break from the previous two quarters, when it surpassed analyst estimates. We already knew sales and operating figures from preliminary results provided earlier this month that hinted that things had reached a bottom and pointed to positive signs ahead. Operating income fell 34%, but was better than estimates, which makes this weak net profit figure confounding.The only division that didn’t share the pain is smartphones, a sandbox that Apple also plays in. Operating profit from that division climbed 67% from a year prior. But Samsung noted that the figure will remain only “steady” this quarter since an expected revenue boost from new models, including a foldable handset, will be offset by higher marketing costs. In the end, it may be best to look at reality. Samsung has chosen a strategy that allows it to dominate a select part of the tech industry. Unfortunately, that means feeling the most pain when such a bet doesn’t pay off.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Apple’s Once-Sunny China Future Looks Hazy
    Bloomberg

    Apple’s Once-Sunny China Future Looks Hazy

    (Bloomberg Opinion) -- China was supposed to be crucial to Apple Inc.’s future. A tech-savvy audience, impressive mobile infrastructure and growing wealth had executives and investors believing the world’s most populous country would drive growth.So far, the data indicate otherwise.The Greater China region — which comprises China, Hong Kong and Taiwan — just posted yet another period of underperformance, contributing little to the iPhone maker’s blowout December quarter.Only Japan posted worse growth in that three-month period, and that’s because the country had just changed regulations on mobile phone contracts that caused what’s likely to be a short-term slump in demand.This poor performance in China is not a one-off; it’s a trend.While the Americas and Europe clearly got a bump from year-end holiday demand, a shopping season that largely doesn’t apply to China, trailing 12-month revenue shows continuing trouble. On that basis, the picture is even worse. While Apple’s Japan business suffered from that regulatory change, its position in Greater China has struggled at the hands of strong local competitors such as Huawei Technologies Co. and Xiaomi Corp.Patriotism and the U.S.-China trade war serve to emphasize to many consumers that domestic offerings are as good as, or better, than what Apple provides. The iPhone was once a solid player in the market, but it now languishes around fifth with a single-digit share of the market.Greater China used to contribute more than a quarter of Apple’s revenue. That figure has fallen closer to 16% on a trailing 12-month basis, the lowest level in more than six years.  It has been convenient to believe that a growing market like China would help Apple overcome a slowdown in mature markets and general smartphone upgrade apathy among consumers. But the latest numbers show the country has a long way to go to fulfill that promise.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is Xiaomi (HKG:1810) Using Too Much Debt?
    Simply Wall St.

    Is Xiaomi (HKG:1810) Using Too Much Debt?

    Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

  • Hong Kong Risks Squandering Its Alibaba Dividend
    Bloomberg

    Hong Kong Risks Squandering Its Alibaba Dividend

    (Bloomberg Opinion) -- Hong Kong is missing an opportunity to displace the U.S. as an offshore listing venue for Chinese companies by keeping trading fees too high. Alibaba Group Holding Ltd.’s $11 billion offering in November showed the potential for the city’s stock exchange to attract U.S.-listed mainland enterprises amid an unsettled trade relationship between the two largest economies. Relatively expensive costs threaten to undermine that appeal.Investors get more for their dollar when they trade on the New York Stock Exchange. In Hong Kong, bid-ask spreads are wider and minimum investment requirements are higher. That increases the chance of so-called slippage, when there is a difference between the expected price of a trade and the level at which it is actually executed. With zero stamp duty and lower minimum trade requirements, the NYSE has a more favorable environment for active investors.Alibaba’s Hong Kong trading volume has slumped since the internet giant made its debut on the local exchange. On Nov. 26, shares valued at the equivalent of about $1.79 billion changed hands. Since mid-December, that figure has dropped to a daily average of about $322 million. The Hong Kong listing has made no dent in Alibaba’s stock trading in New York, where volume has averaged $3.2 billion since late November.To be sure, trading costs are by no means the only factor — or even the main one — in deciding where to buy and sell. To begin with, the U.S. is a more deep and liquid market. It has other advantages, including a more active and developed options market that gives traders more ways to hedge or speculate on stocks. That said, Hong Kong could do a better job of rolling out the welcome mat.Since losing out to New York for Alibaba’s record $25 billion initial public offering in 2014, Hong Kong Exchanges & Clearing Ltd. has made a number of rule changes to enhance its viability as a platform for technology startups from China and elsewhere. In April 2018, the exchange amended its provisions to admit companies with dual-class shares. Smartphone maker Xiaomi Corp.  and internet services company Meituan Dianping listed soon after, demonstrating that when HKEX makes smart decisions, the exchange benefits.More U.S.-traded Chinese companies are looking at Hong Kong for potential secondary listings. They include travel services provider Trip.com Group Ltd., formerly known as Ctrip; game and website operator Netease Inc.; web search provider Baidu Inc.; and e-commerce giant JD.com Inc. The way is open for Hong Kong to create a new offshore ecosystem for U.S.-listed Chinese companies seeking better positioning for the mainland while hedging their bets against a renewed deterioration in the U.S.-China relationship after the phase one agreement was signed this month.It makes little sense to squander this opportunity by maintaining trading costs that are a major barrier to entry. The Hong Kong government and the exchange must work together to make dual listing opportunities both beneficial and attractive to companies while encouraging investors to trade here. However, HKEX regulators seem to have their heads in the sand when it comes to reducing fees and the minimum buy-in to entice more companies. That may be a reflection of its monopoly status: Unlike the NYSE, which must compete with Nasdaq, HKEX has no local rival.Reducing fees would lower the barrier to entry for active investors and increase trading volume. As I wrote in September, cutting stamp duty would help improve liquidity and make Hong Kong stocks more attractive to retail and institutional investors. The ripple effect from this would further strengthen Hong Kong’s position as a global financial center. It’s time for the government and exchange to look beyond the immediate impact of reduced revenue and consider the long term.  To contact the author of this story: Ronald W. Chan at chartwellhk@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Ronald W. Chan is the founder and CIO of Chartwell Capital in Hong Kong. He is the author of “The Value Investors” and “Behind the Berkshire Hathaway Curtain.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Xiaomi spins off POCO as an independent company
    TechCrunch

    Xiaomi spins off POCO as an independent company

    Xiaomi said today it is spinning off POCO, a sub-smartphone brand it created in 2018, as a standalone company that will now run independently of the Chinese electronics giant and make its own market strategy. The move comes months after a top POCO executive -- Jai Mani, a former Googler -- and some other founding and core members left the sub-brand. The company today insisted that POCO F1, the only smartphone to be launched under the POCO brand, remains a "successful" handset.

  • Ant Financial and Xiaomi among 21 applicants for Singapore digital bank licence
    South China Morning Post

    Ant Financial and Xiaomi among 21 applicants for Singapore digital bank licence

    Ant Financial Services and a consortium that includes Hong Kong-listed smartphone maker Xiaomi are among those who have bid for digital bank licences in Singapore, intensifying a rivalry between Hong Kong and the city state to promote fintech-related financial services.The Monetary Authority of Singapore (MAS) said on Tuesday that it had received 21 applications " seven for retail banks and 14 for wholesale banks.The MAS will announce the winners in June, exactly a year after announcing its biggest banking liberalisation in decades. Singapore's central bank plans to issue up to five licences " two retail and three wholesale licences " with the banks expected to start operations in mid-2021.The bids from Ant Financial and Xiaomi, which won virtual bank licences in Hong Kong last year, show their ambitions in expanding in the region. Ant Bank (Hong Kong) will start operating later this year.Ant Financial has bid for a digital bank licence in Singapore. Photo: Bloomberg alt=Ant Financial has bid for a digital bank licence in Singapore. Photo: BloombergThe MAS' move comes after the Hong Kong Monetary Authority, the city's de facto central bank, issued eight virtual bank licences last year. This shows that the two cities are competing with each other to promote fintech by bringing in new players to inject new technology and business models in the banking sector.While the HKMA has permitted the banks to join the ATM network, allowing customers to withdraw cash, the MAS says that digital bank customers will be barred from using ATMs, as it wants them to come up with other innovative banking methods. ZA Bank becomes the city's first virtual lender to launch servicesA spokesman for Hangzhou-based Ant Financial confirmed that the company was one of the digital bank applicants in Singapore. Ant Financial is an affiliate of Alibaba Group Holding, which owns the South China Morning Post."In line with our commitment to promoting financial inclusion globally, we have submitted an application to the Monetary Authority of Singapore for a digital wholesale banking licence. We look forward to contributing to the development of the digital banking landscape in Singapore," the Ant Financial spokesman said.Xiaomi meanwhile has teamed up with Hong Kong-based financial company AMTD Group, energy firm SP Group and SME financing operator Funding Societies for a wholesale licence in Singapore, the consortium said in a statement on Tuesday without providing a shareholding breakdown. The statement added that AMTD is taking the lead."Our ultimate goal is to establish Singapore's most innovative platform bank through an ecosystem of strategic partners to cater for the entire spectrum of funding and business development needs of SMEs and entrepreneurs," said Calvin Choi, chairman and chief executive of AMTD Group.Smartphone maker Xiaomi has bid for a online bank licence in Singapore as part of a consortium. Photo: Reuters alt=Smartphone maker Xiaomi has bid for a online bank licence in Singapore as part of a consortium. Photo: ReutersXiaomi and AMTD had earlier successfully teamed up to form a 90:10 joint venture for a virtual bank licence in Hong Kong. Airstar Bank will start operations this year."Singapore is the pivotal base of fintech development in Southeast Asia," said Hong Feng, co-founder and senior vice-president of Xiaomi.James Lloyd, partner and Asia-Pacific fintech leader at EY, said that the imminent launch of virtual banks was not a "game-changer" for the Singapore market as many traditional banks already offer digital banking services, but the latest move could still benefit customers by adding more competitive pressure in the industry.He also said that the terms of the new digital banks in Singapore were more restrictive than Hong Kong, pointing to the lack of access to ATMs."One key difference is the size of the addressable market. Not only is Hong Kong a bigger banking market, but there exists a medium-term opportunity of accessing the Greater Bay Area. Such a wider market opportunity does not exist in the Singaporean context," he said.He added that other Southeast Asia markets such as Malaysia were launching their own digital banks thereby limiting the opportunities for Singapore-based digital banks to compete in the region.Other applicants who have publicly said that they were bidding for a digital bank licence in Singapore include a joint venture between ride-hailing platform Grab and Singapore Telecommunications, a consortium led by gaming firm Razer, and consumer internet company Sea.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.