On Tuesday, China’s securities regulator dismissed market rumours that Chinese officials were investigating or restricting the listing ambitions of companies in Xiaomi Corp’s (1810.HK) industrial chain.
The China Securities Regulatory Commission (CSRC) was responding to reports on social media that authorities were tightening their grip on Xiaomi-backed companies seeking to list.
The CSRC stated that it would continue to examine initial public offering (IPO) plans in accordance with applicable laws and regulations, treating all applicants equitably and maintaining policy expectations.
“We hope market participants don’t believe in or spread rumours and work together to safeguard a sound market environment,” according to CSRC in a statement.
Xiaomi, a Chinese smartphone maker, announced on Tuesday that it has filed a lawsuit in response to “fabricated and baseless rumours” regarding its manufacturing chain and investment operations on the internet.
Xiaomi declined to reveal more to Reuters.
Xiaomi Corporation, often known as Xiaomi Inc. in Asia, is a Chinese consumer electronics and software, home appliance, and household item creator and manufacturer. It is the second-largest smartphone manufacturer behind Samsung, with the majority of its devices running the MIUI operating system. The company is placed 338th on the Fortune Global 500 and is the youngest.
Xiaomi was started in Beijing in 2010 by now multi-billionaire Lei Jun and six senior partners when he was 40 years old. Lei developed both Kingsoft and Joyo.com, which he sold to Amazon in 2004 for $75 million. Xiaomi launched its debut smartphone in August 2011, and by 2014, it had the greatest market share of smartphones sold in China. Initially, the company solely offered its products online, but it gradually expanded to include other locations. It was producing a wide range of consumer gadgets by 2015. The business expects to sell 146.3 million smartphones in 2020, with over 500 million monthly active users on its MIUI operating system.
Using its Internet of Things and Xiaomi Smart Home product ecosystems, it is also a large manufacturer of gadgets including as televisions, flashlights, unmanned aerial vehicles, and air purifiers.
Xiaomi keeps its prices near to its manufacturing and bill of materials costs by keeping most of its products on the market for 18 months, which is far longer than most smartphone firms. The business also uses inventory optimization and flash sales to keep its inventory low.
On February 8, 2022, Lei issued a message on Weibo announcing Xiaomi’s plans to join the high-end smartphone market and, within three years, overtake Apple as China’s top seller of premium handsets. Xiaomi plans to invest $15.7 billion in R&D over the next five years to meet that target, and the business will compare its products and user experience against Apple’s.
