Categories Technology

China’s richest eye Xiaomi IPO despite Shanghai index slump

As smartphone giant Xiaomi Corp readies itself for a mammoth IPO in Hong Kong, China’s billionaires are circling for a slice of the pie. These elite include the triumvirate of Li Ka-shing, Pony Ma, and Jack Ma.

Former Chairman of CK Hutchison Holdings, Li Ka-shing is said to have planned a whopping $30 million buy for a yet-to-be-disclosed share of Xiaomi, while Tencent chief Pony Ma and Alibaba founder Jack Ma – the richest men in China – also plan to invest heavily in the Apple competitor. Xiaomi is expected to raise at least $6 billion, and might even surpass the coming out party of Postal Savings Bank of China Co, which raised more than $7.5 billion back in 2016.

It is also expected that international giants such as China Mobile and Qualcomm Inc might also pour money into the IPO, making it quite a Page-3 event as far as business deals are concerned.

The Hong Kong Economic Journal first reported Li Ka-shing’s deal, and it is expected to raise the positive sentiment for the stock, given that Li enjoys a celebrity-status among HKeX investors.

Chinese stocks fall

As the bear attacked the benchmark, The Shanghai Composite Index, Chinese stocks fell, especially on US trade war fears. The market also saw investors ignore government checks including the reserve-ratio cut over the weekend. From January high, the slide has now wiped about $1.8 billion from the market.

Many analysts also cite that if the trend continues, it will really affect companies with higher dollar-debt.

The Shanghai Composite Index has now slid 14% – the most among major benchmarks. This has invited a troubling time for the Chinese government in Beijing, whose efforts seem to have gone in vain. China’s broadest measure of new credit slumped in May to the lowest in almost two years, data this month showed.

Most Popular

PepsiCo (PEP) expects snacks business to remain resilient in the near term

PepsiCo Inc. (NASDAQ: PEP) reported first quarter 2021 earnings results on Thursday that topped expectations on both the top and bottom lines. The stock has gained 7% in the past

For Wells Fargo (WFC), Q1 sets the stage for long-term recovery

Emerging from the slowdown caused by coronavirus, the financial services sector entered fiscal 2021 on a bright note, thanks to improving economic activity and the COVID-driven boom in stock trading.

Top 3 Artificial Intelligence stocks you may consider in 2021

Artificial Intelligence has become an integral part of the US economy. According to the analyst’s insights, AI market revenue in 2020 was $25.9 billion. The AI market in the North

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top