vested
Instead of doubling, Xiaomi loses 44pcby Tereza Cai
Xiaomi (1810), Hong Kong first stock with weighted voting rights, fell 1.14 percent to HK$9.50 yesterday, with the shares declining by a cumulative 44 percent on its one year listing anniversary, as the frozen period of its second batch involving 4.38 billion shares ended yesterday.
Morningside Venture Capital under Hang Lung Properties' (0101) chairman Ronnie Chan Chi-chung, invested in Xiaomi eight years ago, and held 2.71 billion such unfrozen B shares, accounting for 15.69 percent of Xiaomi's issued B shares.
An analyst said investors are losing patience waiting for Xiaomi's promise on debut of doubling its share price.
The one-year freeze period of 9.65 percent of Xiaomi B shares, held by founders Liu De, Hong Feng, and Li Wanqiang, were also unfrozen.
Data from the Central Clearing and Settlement System showed Xiaomi's employees have executed a cumulative 270 million shares options so far this year, and sold 210 million shares to cash in about HK$2 million based on yesterday's closing price, reports said.
Though the striking price of the stock option is as low as between 39 HK cents and HK$1.36 - more than 90 percent discount compared to the current share price - employees need to pay up to 45 percent income tax if they exercise the options and sold the stocks.
In a bid to bolster market confidence in Xiaomi, chief executive Lei Jun required senior managers to explain the reasons if they want to sell their stakes. The firm has spent more than HK$1 billion in the past year to repurchase its shares.
Source: The Standard
http://www.thestandard.com.hk/section-n ... 0710&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"