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Xiaomi launched an initial public offering (IPO) in August 2018 on the Hong Kong Stock Exchange and has been a publicly traded company ever since. So, its shareholders own the technology stock.
However, co-founder, chairman, and CEO Lei Jun is the controlling shareholder. He owns enough Class A shares to control 62.3% of the voting power. Meanwhile, co-founder and vice chairman Lin Bin holds 6.9% of the voting power. Although they don't own a majority of its stock, they ultimately control the company's destiny.
Xiaomi is a publicly traded company with many shareholders, including insiders (company officers and members of the board of directors) and institutional investors. Two of the company's co-founders own a meaningful stake in the company:
The co-founders can convert their Class A shares into Class B shares at a 1-to-1 ratio. The conversion ratio implies they own a combined 22.4% of the company, in addition to their sizeable stake in Class B shares.
Xiaomi's board of directors has seven members as of early 2024, including three of the company's co-founders. Here's a closer look at each member:
It's possible to invest in Xiaomi. However, investing in the publicly traded Chinese company is more challenging because its stock isn't listed on a U.S. stock exchange, such as the New York Stock Exchange (NYSE) or Nasdaq Stock Exchange.
The company listed its stock on the Hong Kong Stock Exchange when it completed its IPO in 2018. So, you'd need a brokerage account capable of trading shares of companies listed on foreign exchanges or buying shares listed on the OTC markets exchange. Here's a list of the best brokers for international trading.
Opening a brokerage account is one of the first steps in learning how to invest in stocks. Another crucial step is to research the company. You'll need to thoroughly research the Chinese consumer technology company before you buy shares.
You must be comfortable with the added risks of investing internationally, including foreign exchange risk, potential oversight and corporate governance differences, and possible trading liquidity problems. You also must be comfortable investing in a company whose two major co-founders hold more than 70% of the voting power, which gives them the power to vote against an item that a majority of shareholders might approve.
Other factors to consider when researching a company include its profitability, balance sheet, and competitors. If you're unsure you want to invest directly in the company, you could gain passive exposure through a tech ETF focused on Chinese stocks.
Once you've opened and funded an internationally capable brokerage account and thoroughly researched the company, it's time to buy shares. Before you do, you'll need to determine how much you want to invest in the company.
A good rule of thumb is to have a diversified portfolio of at least 25 stocks with roughly equivalent allocations. For example, if you plan on investing $10,000 into building a diversified portfolio, you'd invest around $400 in each stock, including Xiaomi.
Xiaomi (OTC:XIACF) is one of the world's largest smartphone makers. The Chinese consumer electronics maker ranked third behind Apple (NASDAQ:AAPL) and Samsung (OTC:SSNL.F) by market share in 2023. While it doesn't sell smartphones in the U.S., it's a leader in its home market and a major player in the global marketplace.
The company started in 2010 to disrupt the global phone market. Co-founder Lei Jun founded the company because he was dissatisfied with other mobile phone products and believed he could make a better one. With 12.5% of the global smartphone market by shipments in 2024, Xiaomi has clearly developed products that many find better than those produced by other smartphone makers.
Xiaomi's co-founder remains one of the company's top owners. Here's a look at the company's owners, its board of directors, and how to invest money into the Chinese consumer electronics company.
There isn't much publicly available information about the institutional investors of the Hong Kong-listed stock. However, several large U.S. mutual funds and exchange-traded funds (ETFs) hold shares of the Chinese mobile phone maker. The top five U.S. fund holders in early 2024 are:
When you're ready to buy shares, you'll open the order page at your brokerage account and fill out all the required information, including:
Take a moment to double-check everything to make sure the information is correct. When you're ready, click submit to become a shareholder of Chinese smartphone maker Xiaomi.
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