Xiaomi vs. So Su Mi
No, we couldn't think of a beter "sue" pun...phones are off the hook with pre-IPO offers.
But the timing of Xiaomi's vow to sue for being delisted, on claims it has China military ties, is too thought-provoking to pass up.
Normally, despite US founding legal principles, Xiaomi's pleas for evidence of ties before being found guilty and punished would be easily dismissable, because, you know, it's China.
But as the masses catch a Wall Street Bets wave of wokeness, and see Bloomberg, CNN, and other MSM bastions piling in to spin for Wall Street, unencumbered by obstacles like facts, the Department of Defense's so far unsubstantiated claims are easy to compare to weapons of mass destruction.Or mass market manipulation.
Pleading Xiaomi's case? Not us. Rather, we're trying to see how this might play out for western companies with interests in Chinese bourses. Are retaliatory measures on the horizon?
"Not from where we're standing," says Edward Lehman. "China has a lot riding on mitigating global decoupling as far as is possible: its dual circulation strategy, its growth in FDI, robust growth of the STAR market, and stability of the HK bourse. Any direct punitive measures for delisting Chinese tech companies on NASDAQ just wouldn't make sense, short or long term."
"Look for increasing stimulus of tech sector growth in China, both by fiscal and policy measures," adds Jimmie Jeremejev.