Investing.com - Shares of Chinese smartphone producer Xiaomi Corp (HK:1810) rebounded 3.43% to HK$12.06 on Wednesday morning after a 4% drop in the previous session.
Shares had fallen following a report from China’s financial authorities on accounting errors by the company.
China’s Ministry of Finance released a report on Oct. 26 on its annual accounting information inspection, which indicated that Xiaomi had not filed corporate gifts for taxes, and incorrectly recorded corporate expenses in the 2016 financial year, as well as other problems in its accounting system. But the document also showed that Xiaomi has corrected its errors accordingly.
Xiaomi said the rumors on tax avoidance were “far from the truth.” The company said the authorities had already approved its account after it rectified all the errors.
Xiaomi is set to open its first store in the UK on November 10.