Xiaomi drops over 4% in the market, Lei Jun will hold a "car disassembly" live stream tonight

Ask AI · Can Lei Jun’s car-disassembly livestream reverse Xiaomi’s stock price decline?

In the early trading session on April 2, the market’s much-anticipated “ceasefire” statement failed to materialize, and the Hong Kong stock market came under further pressure and declined again. The Hang Seng Tech Index dropped over 2% at one point. As of press time, the largest Hang Seng Tech ETF, Huaxia (513180.SH), and the Hang Seng Internet ETF, Huaxia (513330.SH), both fell more than 2%.

Most of the index constituent stocks declined, with fewer gains. Notably, Xiaomi Group -W’s intraday decline once exceeded 4%, with its lowest price reaching HK$30.66. This is a 50% drop from the all-time high of HK$61.45 set on June 27, 2025, effectively halving the stock’s value. Industry analysts suggest that upstream storage chip shortages have squeezed Xiaomi smartphone profits, and that the delivery of Xiaomi’s new vehicle models has fallen short of market expectations—both factors may be driving the ongoing decline in Xiaomi’s stock price.

Xiaomi founder Lei Jun announced on social media that on April 2, 2026, from 19:00 to 24:00, he will host a special “car-disassembly livestream,” personally leading a team of technical experts to fully disassemble a brand-new 2026 Xiaomi SU7.

Overall, the Hong Kong tech sector has been volatile and trending downward since October of this year, continuing for half a year. Due to factors such as tightening liquidity and pessimistic earnings forecasts driven by AI investments, the adjustment has been especially sharp for internet giants. The Hang Seng Internet Index has retreated nearly 35% from its high.

Industrial Securities Strategy noted: After ongoing adjustments earlier, the Hong Kong internet sector has already priced in a relatively full expectation of pessimism. The pressure for further downward earnings revisions is easing. As expectations for mid-term US-Iran negotiations become clearer, and if geopolitical tensions ease marginally, there could be an opportunity for market sentiment to recover. Overall, despite short-term volatility, the Hong Kong market has gradually shown resilience in valuation and earnings, approaching a bottom zone.

Individual investors without access to Hong Kong stocks or the Stock Connect can consider the Huaxia Hang Seng Internet ETF (513330.SH). Its underlying index includes leading internet companies such as Alibaba, Tencent Holdings, Baidu Group, Xiaomi Group, and others, making up about 60% of the portfolio, with a relatively concentrated leadership.

Compared to the Hong Kong Stock Connect Internet ETF, the Hang Seng Internet ETF (513180.SH) offers broader coverage of Hong Kong’s internet giants, including companies not in the Stock Connect scope, such as JD.com, NetEase, GDS Holdings, and Baidu Group, and supports T+0 intra-day trading. Investors can also periodically invest in the Huaxia Hang Seng Internet ETF Connect C (013172.OF) during dips.

Daily Economic News