INTERNATIONAL - Chinese authorities on Tuesday said smartphone maker Xioami Corp made errors in its accounting, sending the company’s Hong Kong-listed shares down amid a wider sell-off of China tech stocks.
Xiaomi was one of several internet firms named in the annual inspection by China’s Ministry of Finance. Other firms include e-commerce giant Suning.Com Co Ltd and online game developer Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co Ltd.
Xiaomi’s stock was down 4 percent on Tuesday morning.
The ministry in its report said Xiaomi had made tax errors on corporate gifts and had incorrectly recorded some corporate costs. The document noted that the firm has already rectified the errors.
It also noted that other companies had made efforts to evade taxes by shifting their profits overseas.