Understanding the Market | Xiaomi Corporation-W is currently up over 6% as Xiaomi clarifies rumors of SU7 being denied insurance. Daiwa states that the company's fundamentals remain strong

Xiaomi Corporation-W is currently up over 6%, as of the time of writing, it has risen 3.86%, priced at HKD 40.4, with a transaction volume of HKD 11.102 billion. In terms of news, on April 7th, regarding the online rumor that "Xiaomi SU7 was rejected for insurance," a spokesperson for Xiaomi stated on Weibo that the rumors related to the insurance of the Xiaomi SU7 have been organized and spread. Currently, the insurance service for the SU7 model is stable and normal, and the information circulating online is seriously inaccurate; additionally, the rumor that "the accident rate of the SU7 is several times that of vehicles in the same price range" also has no factual basis. Daiwa released a research report stating that Xiaomi Corporation's stock price has been weak following the accident and the placement of shares, but due to its still strong fundamentals, they believe the decline in stock price presents an attractive buying opportunity. The firm pointed out that Apple's market share in China's smartphone market has been declining over the past few years, and they believe that Xiaomi's smartphones will gain more cross-selling opportunities from high-end users, thereby gaining more market share in the future; the IoT business still has considerable growth potential in the coming years, and the company will continue to focus on products with higher marginal profits and formulate overseas expansion plans; the group will continue to grow in the electric vehicle market and bring more synergies