=MARKET BUZZ: Xiaomi Falls; Dimmed Hopes For Southbound Inflows-CSL Securities
HONG KONG (Jul 16) -- Xiaomi retreats 1.9% to HK$21.05, recovering after steep early losses; stock fell as low as HK$19.40 in early trading after closing at HK$21.5 on Friday versus IPO price of HK$17. Shanghai Stock Exchange and Shenzhen Stock Exchange said on Saturday they will not include companies with weighted voting rights (WVR) in list of stocks eligible for cross-border Stock Connect programs "for the time being." Some analysts attribute today's drop to pricked hopes that its shares would see large southbound capital inflows when it becomes member of Hang Seng Composite Index with effect from July 23. "It is the first weighted-voting-rights stock. Therefore, mainland exchanges and investors need some time to observe what impact it may have," says Michael Wong, director at CSL Securities, adding that Xiaomi is still likely to be included into stock connect links in due course. Wong, however, doubts recent rally in Xiaomi shares can be sustained in "the absence of southbound inflows."
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