At midday, the stock staged a recovery from HK$16 (£1.53) to HK$16.96 but was still below its debut price of HK$17.
By contrast, China Literature Ltd, the e-book arm of Chinese gaming and social media firm Tencent Holdings, late a year ago raised US$1.1 billion for its Hong Kong IPO amid heavy demand, with the retail portion being 625 times oversubscribed. It raised $4.72 billion from its IPO, making this the world's biggest new technology in four years. "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.
Asked at the listing ceremony on Monday if the low pricing of Xiaomi and some other tech firms will weigh on upcoming IPOs, Hong Kong stock exchange CEO Charles Li said it was not up to the exchange to have a view: "The market is always open".
Xiaomi's trading debut comes at a time when global stock markets have been roiled by the escalating trade clash between the United States and China.
The weak pricing values the firm, which also makes internet-connected home appliances and gadgets, at about $54 billion, nearly half its original US$100 billion ambition earlier this year.
At Monday's closing price the company had a market value of $53.3 billion.
Xiaomi's founder Lei Jun described his company's business model as a "triathlon model" with three components; third-party hardware sales, smartphone sales, and "internet service" sales which include media and ads. The company pitches itself as going beyond devices to offer internet services, such as video streaming, although it has yet to see significant revenue in the services category.
Xiaomi sold 2.18 billion shares in its IPO, 1.4 billion of which were new shares.
Digital Extremes to port Warframe to Nintendo Switch
We are also actively engaging with indie developers at video game-focused shows and other events in different regions. You play as a member of an ancient race of warriors called the Tenno who are now part of a modern-day war.
Barcelona set their sights on Eden Hazard
Hazard said that his country will find it hard to beat France if Chelsea teammate N'Golo Kante "is at his best" for Les Bleus. Real Madrid are also believed to be interested in the 27-year-old.