HONG KONG: Chinese No 2 smartphone manufacturer Xiaomi briefly suspends trading of its Hong Kong shares on Wednesday after failing to announce a multi-billion-dollar top-up in time for the opening of the market.
Just after trading started with a brief announcement to the stock exchange. The rare halt came and stayed in place during the morning.
After a complete disclosure of a share and bond sale, trading started again in the afternoon, while shares were down more than 6%.
Xiaomi said it plans to sell 1 billion shares at HK$23.70 per piece in the subsequent filing on the stock exchange, collecting US$3.1 billion.
It also proposed that convertible bonds be issued, generating a net sum of US$855 million.
If such inside information has been made public before an official disclosure, the Hong Kong stock exchange needs a company to apply for a trading halt.
Castor Pang, head of research at Core Pacific-Yamaichi International Hong Kong, told Bloomberg News. “It is definitely unusual because other companies with share placements usually file official announcements soon after pricing.”
More than 140 percent of Xiaomi’s shares have soared this year, fuelled by the troubles of its key rival. US sanctions batter the HuaWei as tensions plummeted with Beijing.
The selling of shares and bonds would help the company raise its coffers to win more Huawei market share.