$XIAOMI-W(01810.HK)The impact of Xiaomi shareholders' reduction on stock prices is multi-layered and time-sensitive: it may cause significant fluctuations in the short term (1-30 days), while in the medium to long term (over 30 days), it will return to being dominated by fundamentals. The key to assessing the extent of the impact lies in distinguishing the subjects of the reduction (founders/executives/institutions), the motives (active/passive), and the scale of the reduction.

For investors, Xiaomi's strong fundamentals (Q2 2025 net profit up 75.4% YoY, with the automotive business about to turn profitable) are the most solid safeguard against the impact of the reduction. Short-term fluctuations may present better entry opportunities, but investors should be wary of potential corporate governance or performance concerns reflected by sustained large-scale reductions.