From being sought after to being consistently shorted by hedge funds, the short position of XIAOMI-W(01810) has surged by over 50% in a week.

Goldman Sachs Group said that as the release of XIAOMI-W (01810) financial reports approaches, market caution is rising and hedge funds are increasing their bearish bets on it. In a report on Wednesday, Goldman's sales department wrote that short positions in Xiaomi in their main trading book increased by 53% in the past week. The report also showed that institutional trading funds dominated by pension funds and hedge funds have been net sellers in the past two weeks. They wrote that feedback from hedge funds is that Xiaomi is "at least a consensus short/sell target in the short term, due to the lack of catalysts." Security concerns, production delays in factories, and lackluster demand for their electric cars despite recent promotions are all weighing on market sentiment. Market sentiment has deteriorated sharply compared to earlier this year when optimism about Xiaomi's entry into the electric car sector boosted its stock price. Since peaking in early July, the company's stock price has plummeted by over 25%. Goldman analysts recently lowered Xiaomi's target price by over 10%, citing profit margin pressure due to rising memory chip prices. This smartphone and electric car manufacturer is set to release its third-quarter financial results on November 18th, with market consensus expectations indicating a 23% year-on-year revenue growth.