Xiaomi Corporation (01810.HK) is facing a sobering market correction as its share price has plummeted nearly 50% from its historical peak reached just nine months ago. On April 10, 2026, the stock closed at 30.90 HKD, marking a significant retreat from the 61.45 HKD high recorded in June 2025. This downturn has effectively wiped out approximately 792.3 billion HKD in market capitalization, highlighting the volatility inherent in the tech giant's aggressive expansion strategy.
The decline has been particularly painful for a group of institutional investors who participated in a massive 42.5 billion HKD private placement completed in March 2025. These investors, who subscribed to 800 million shares at a price of 53.25 HKD per share, are now sitting on a floating loss of nearly 42%. While the capital was intended to fuel Xiaomi’s business expansion and intensive R&D efforts, the timing of the issuance has left major backers underwater as the market reassesses the company's growth trajectory.
Xiaomi’s current struggle comes at a pivotal moment as the company pivots from its core smartphone business into highly competitive sectors like electric vehicles (EVs) and advanced artificial intelligence. The 2025 capital raise was specifically earmarked for accelerating this business expansion and bolstering technological capabilities. However, the sheer scale of capital destruction—nearly half of the company's peak value—suggests that investor enthusiasm for Xiaomi’s 'all-in' approach to EVs and AI may be giving way to concerns over execution risks and burn rates.
Despite the share price woes, the company continues to push forward with its ecosystem strategy, including the launch of its AI-driven 'SU7' and 'YU7' automotive models and new 2nm-process smartphones. The tension between Xiaomi’s long-term industrial ambitions and its short-term stock performance represents a significant test for CEO Lei Jun’s leadership. For institutional holders, the focus now shifts to whether Xiaomi’s massive R&D investments can yield the margins necessary to recover from this nearly trillion-dollar market cap erosion.