Hedge Fund Manager's Public Critique of Xiaomi Sparks Market Debate

Deep News04-04 14:41

The founder of Ridou Investment, a billion-yuan私募 fund, has drawn significant attention with his public comments regarding XIAOMI-W. The stock price of XIAOMI-W has been in a persistent decline, falling approximately 50% from its mid-2025 peak. This public questioning of the company's business strategy has prompted market focus on both the firm's development plans and the broader trajectory of the Hong Kong technology sector.

On April 2, the share price of XIAOMI-W hit a new low for 2025, closing below HKD 31 per share, which represents a 50% drop from the high seen in the middle of last year.

Wang Wen, the founder and chairman of Ridou Investment, publicly expressed his doubts about XIAOMI-W in consecutive social media posts on April 1 and April 2. He pointed out that while Xiaomi has ventured into numerous industries, it rarely ranks within the top three in any specific sector. He questioned the company's long-term strategy, suggesting a tendency to chase trends, as it moves into hot areas like AI and robotics before having solidified and excelled in its existing businesses. Wang emphasized that a company must build a core competitive advantage; otherwise, its long-term development lacks a solid foundation.

In the early hours of April 4, Wang Wen issued an urgent clarification via his personal social media account, adding context to his earlier remarks. He stated, "I often talk nonsense, so everyone should not take it too seriously. Xiaomi is an excellent company! However, focusing efforts leads to benefits; a lack of concentration on the main business is not to my taste."

Amidst these changing market conditions, Xiaomi continues to increase its investment in cutting-edge technologies. On March 30, CEO Lei Jun announced that the company's research, development, and capital expenditure in the AI field will reach 16 billion yuan in 2026. Additionally, the company has initiated a special recruitment drive for AI talent, opening channels for top experts, new graduates, and interns to strengthen its talent pool in artificial intelligence.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment