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Hong Kong

HK : Xiaomi Corporation - Placed on DOD investment blacklist; growth prospects intact

    Ray Kwok
    Ray Kwok

    Technology Analyst

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    CGS-CIMB
    17 January 2021
    Published byCGS-CIMB

    Xiaomi has been added to the Communist Chinese military companies list, likely leading to near-term selling pressure as US investors will cut positions. Xiaomi confirmed that it is not owned or controlled by the Chinese military and said that the supply chain was intact. We retain our Add call as we believe this will not affect Xiaomi’s smartphone shipment growth prospects. We suggest accumulating on price weakness.