Xiaomi shares keep sliding while its smartphone ambitions soar

Xiaomi Corp. stock remains one of the biggest losers among China’s technology giants, even after the company dodged Beijing’s regulatory crackdown and set its sights on becoming the world’s largest smartphone maker.

Despite overtaking Apple Inc. in the second quarter to become the No. 2 smartphone manufacturer behind Samsung Electronics Co., some analysts recently lowered their price targets and recommendations on the stock, citing slowing demand, strong competition and supply chain difficulties.

The shares are hovering near their lowest level in more than a year in Hong Kong, having dropped about 40% year-to-date to be among the worst performers on the Hang Seng Tech Index in 2021.