XIAOMI-W (01810) dropped over 3%, extending its decline to more than 30% from its peak in June this year. At the time of writing, the stock was down 3.08% to HK$42.1, with a trading volume of HK$3.076 billion.

According to the latest data from Goldman Sachs' prime brokerage business, hedge funds' short positions in Xiaomi surged by 53% over the past week. The bank's high-frequency trading division also reported that pension funds and hedge funds dominated selling activity in the past two weeks.

Investor sentiment is turning cautious ahead of the Chinese tech giant's Q3 earnings release on November 18. The report noted that hedge funds view Xiaomi as a "consensus short/sell target in the near term due to a lack of catalysts."

Goldman Sachs recently lowered its target price for Xiaomi, citing factors such as rising memory chip prices pressuring smartphone margins, single-digit growth in the AIoT business, and delays in the second-phase EV factory affecting deliveries.