Its shares touched a low of HK$16 in opening deals. It fell about 4 percent in early trading but ended higher at 16.80 Hong Kong dollars ($1.98). Though still the second largest IPO this year, raising a net $3.1 billion (HK$24 billion), the company has a market capitalization of $48 billion (HK$376 billion).
Investors, senior officials from the Hong Kong Exchange, 175 Xiaomi employees and some Xiaomi users attended the ceremony. 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.
"At this critical moment in Sino-US trade relations, the global capital markets are in constant flux", he said. Most recent floats in Hong Kong dropped below IPO prices.
Xiaomi helped to pioneer the trend for ultra-low-priced smartphones and says it plans to become an equipment-and-hardware brand alongside Apple Inc.
After a sizzling 2017, Hong Kong's tech listings are now struggling. It is also the first under the city's new rules permitting dual-class shares, common among USA tech firms, in an attempt to attract tech sector floats.
"We are an internet firm".
The company is the first in Hong Kong to sell shares with a dual-class structure since the city changed its rules to allow founders to keep outsized voting rights, although that means the stock won't be included in MSCI's global benchmarks.
Xiaomi CEO and co-founder Lei Jun acknowledged the unfortunate timing in remarks at the Hong Kong stock exchange on Monday morning.
China Tower, the world's largest mobile tower operator, has won approval for an IPO that could raise up to $10 billion.
Shares of some other tech-related companies that floated recently have been weak in Hong Kong. Ping An Healthcare & Technology's May debut flopped after the retail tranche was 600 times oversubscribed.
Asked if the low pricing of Xiaomi and some other technology firms will weigh on upcoming IPOs, Hong Kong stock exchange CEO Charles Li said at the Xiaomi listing ceremony: "We can not put a brake".
Let us know in the comments if you think Xiaomi will do well in the medium and long term in terms of its stock price.
Lei said without the innovation of the Hong Kong capital markets, it would be hard for Xiaomi to be listed in Hong Kong.