Xiaomi’s market value breached HK$1 trillion (US$128.4 billion) for the first time after its shares surged to an all-time high, as China’s third-biggest smartphone maker reaps the benefits from its diversification into electric-vehicle (EV) manufacturing.
The company’s shares rose as much as 5.7 per cent to HK$40.10 in Hong Kong on Tuesday, lifting its underlying capitalisation above the trillion-dollar threshold. They ended at HK$39.55 at the close of trading, trimming its value to HK$992.9 billion. The Hang Seng Index surged 2.8 per cent amid hopes that a trade war could be averted.
Xiaomi had 20.59 billion Class B shares listed on the local stock exchange, according to its latest filing on January 13. The firm separately had 4.52 billion unlisted Class A shares controlled by founder Lei Jun. Each carries 10 votes and which could be converted into Class B shares on a one-for-one basis.
“The stock price reflects its solid fundamental factors,” said Kenny Ng, a strategist at Everbright Securities International. Given the upwards trend and improved investment sentiment, the stock was expected to perform well in the short term, he added.
02:46
China hits back at US tariffs with vow to take case to the WTO
China hits back at US tariffs with vow to take case to the WTO
The rally came amid a bullish view on its car business, unscathed by an escalation in US-China trade tensions as the world’s two biggest economies prepare to fight another trade war with tariffs on exports. The company generates most of its revenue at home, with only 3 per cent coming from the US, according to Morningstar.
Source link
