Bezos offers to pay billions to NASA Alexa gets new name, voice Obi-Wan Kenobi on Disney Plus Simone Biles at the Olympics Kevin Can F**k Himself 4th stimulus update

Xiaomi makes its IPO, watches shares plummet by nearly 6%

Rich valuations can sometimes lead to sharp drops.


Lei Jun (center), Xiaomi's CEO with senior vice president Li Wanqiang (left) and executive director Lin Bin (right) ahead of the company's IPO.

Philip Fong / AFP/Getty Images

Xiaomi struggled in its debut on the Hong Kong stock market Monday morning, with its shares falling by nearly 6 percent.

As the Chinese phone manufacturer maker made its IPO, its shares were down more than 2 percent and fell by 5.88 percent during the session.

Its shares were priced at 17 Hong Kong dollars (about $2, £1 or AU$3), but hit a low of 16 HK dollars before bouncing back up to 16.88 HK dollars ahead of the midday break, according to Reuters.

Despite Xiaomi's challenging debut, Reuters notes that Hang Seng -- the Hong Kong stock market index -- was 1.7 percent higher.

"I think short-term stock price is mostly dictated by market conditions. What we will be doing is to focus on the long-term growth of our business," Lin Bin, Xiaomi's president and co-founder, told CNBC on Monday.

Xiaomi's IPO comes days after the US and China began a trade war that has seen each nation imposes billions in tariffs on the other.

Last week, it was reported that Xiaomi hopes to enter US market in 2019, despite its rivals' struggle with political roadblocks.

Now playing: Watch this: iPhone X and Xiaomi Mi 8 Explorer, compared