On June 27, Xiaomi Group’s stock price plummeted by 7.18%, marking the largest single-day drop since October 24, 2022. The widespread decline in Hong Kong’s technology stocks was attributed to Xiaomi Group’s sharp fall.
As of the closing on the 27th, the Hang Seng Index dropped by 2.06%, the Hang Seng Tech Index fell by 2.73%, the state-owned enterprises index declined by 2.37%, and the Red Chip Index decreased by 2.53%.
According to the Daily Economic News, Xiaomi Group suffered a significant setback in the Hong Kong stock market on that day. By the close of trading, Xiaomi Group-W dropped by 7.18%, closing at 16.54 Hong Kong dollars per share. At one point during the trading session, Xiaomi Group hit a low of 16.34 Hong Kong dollars. Based on the closing price, Xiaomi Group recorded its largest single-day drop since October 24, 2022, also hitting a new low in two months.
Affected by Xiaomi Group’s sharp decline, technology stocks in Hong Kong generally experienced a downturn. Alibaba-SW dropped by 1.78%, Tencent Holdings fell by 1.99%, JD.com Group-SW declined by 2.22%, Meituan-W dropped by 2.82%, Kuaishou-W fell by 2.32%, Bilibili-W, JD Health, and Sino Biopharmaceutical saw drops of over 4%; while Hua Hong Semiconductor, SMIC International, and Ping An Good Doctor registered declines of over 3%. As a result, the Hang Seng Tech Index briefly fell by nearly 3%.
Blue-chip stocks in the Hong Kong stock market also weakened. Master Kong Holdings, Nongfu Spring, and MMG Limited all fell by more than 7% intraday, Haier Smart Home, and China Glass Holdings dropped by nearly 6%, China Overseas Development and Zoomlion Heavy Industry witnessed declines of over 5.11%.
According to the Securities Times on the 27th, the recent controversy surrounding Xiaomi Group involved Vice Chairman Lin Bin’s share reduction. Disclosure on the Easy-App website revealed that on June 4, Lin Bin sold 3.33 million shares at an average price of 17.7704 Hong Kong dollars per share, netting around 59.2287 million Hong Kong dollars; on June 5, he sold another 3.33 million shares at an average price of 17.8025 Hong Kong dollars per share, cashing out about 59.3357 million Hong Kong dollars; and on June 6, he sold 3.34 million shares at an average price of 18.0471 Hong Kong dollars per share, totaling approximately 60.169 million Hong Kong dollars.
On June 22, Lin Bin posted on Weibo stating that he had promised not to reduce his holdings for five years, excluding shares owned by the foundation. The proceeds from this reduction, apart from donations to his alma mater Sun Yat-sen University, will also be used for more charitable donations.
In September 2020, Xiaomi Group issued an announcement where Vice Chairman and Executive Director Lin Bin voluntarily committed that for five years from the date of the announcement, neither he nor any entities under his control would sell the company’s shares that he directly or indirectly beneficially owns at his discretion.