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Xiaomi gains after Hong Kong bourse signals stock connect rule fix

Xiaomi shares climbed  in Hong Kong on Wednesday after the city’s stock exchange signalled it was working China’s main bourses to fix new rules that had threatened to block mainland Chinese investors from the smartphone marker’s shares.

Beijing-based Xiaomi, the world’s fourth largest smartphone maker which debuted in Hong Kong last week, was the first company to float in Hong Kong with dual-class shares giving greater voting rights to company founders over individual investors. 

But its shares sank by almost 10 per cent at one point on Monday after the Shanghai and Shenzhen stock exchanges said on Saturday that certain companies, including those with dual-class shares, would be excluded from the stock connect trading channel that allows Chinese and Hong Kong-based investors to buy shares in each other’s markets. 

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