"And they have to speed up the pace if they aim for a good valuation", said Hong Hao, the chief strategist at brokerage BOCOM International.
Xiaomi's shares dipped in early trading, hitting HK$16 in mid-morning trade, down almost 6% from the HK$17 they had been sold at. Hong Kong's Hang Seng rose 1.5 percent to 28,745.84, while the Shanghai Composite index was up 1.6 percent at 2,790.02.
Xiaomi priced its IPO at HK$17 per share, the bottom of the range it offered, raising $4.72 billion in the world's biggest technology float in four years. Others say the ongoing trade war between the USA and China has spooked investors from putting money in Chinese companies. Before Monday, Hong Kong's benchmark index had fallen more than 10% from early June.
The shares were set to open at HK$16.60 on Monday. Instead, the current valuation of $46 billion essentially means the company's value remains unchanged from its last fundraising round in 2014. Apple is trading at 16 times earnings and Chinese social media giant Tencent is trading at 36 times. Most recent floats in Hong Kong dropped below IPO prices.
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Chinese smartphone and telecommunications equipment maker ZTE has been in crisis since the U.S. government banned American companies from selling it components, citing violations of an earlier deal that punished the company for evading sanctions on Iran and North Korea. Such firms tend to carry far higher valuations than device makers.
Xiaomi is one of the world's most hotly anticipated stock market listings, having risen to prominence in developing markets, such as China. It is also the first under the city's new exchange rules permitting dual-class shares, common in the US tech industry in an attempt to attract tech floats. "Without the innovation of Hong Kong's capital markets, we wouldn't get a chance to go public in Hong Kong", he said.
"We are different from many of our peers", said Liao, shrugging off concerns a bearish sentiment towards technology stocks could weigh on WeDoctor's performance in Hong Kong.
Xiaomi sold 2.18 billion shares in its IPO, 1.4 billion of which were new shares. Goldman Sachs Group Inc., Morgan Stanley and CLSA Ltd. are leading Xiaomi's IPO as joint sponsors.
Xiaomi is the biggest smartphone seller in India and is making inroads in Europe.