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Photographer: Paul Yeung / Bloomberg
Photographer: Paul Yeung / Bloomberg
Xiaomi Corp. founder Lei Jun can finally rejoice after the Chinese smartphone maker’s market value surged past the $ 100 billion mark, a figure his company fell short of when it listed two years ago. .
The company’s shares rose as much as 9.1% on Wednesday to a new record in Hong Kong, making it the 13th stock in the city’s benchmark Hang Seng index to have a market capitalization of more than 100 billion. of dollars. It ended the day 7.6% higher with a market value of HK $ 802 billion ($ 103 billion).
Xiaomi, which generates the majority of sales from its smartphone business, originally estimated a $ 100 billion valuation for its initial public offering, people close to the deal said in May 2018. But it was only in half that level on its debut, and the stock traded below the HK $ 17 offer price for most of its first two years as a public company.
The stock saw its fortunes reversed in August, after it was announced that Xiaomi would be added to the Hang Seng index. The shares have more than doubled since then. Strong Sales during China’s “Double 12” shopping festival helped fuel this month’s 20% increase in stocks and a proposal to Boosting the weighting of companies like Xiaomi in the Hang Seng Index to 8% from 5% could lead to more profits.
Xiaomi in November reported its fastest quarterly sales growth in two years, while earnings beat analyst estimates. It remains one of the few major Chinese tech firms enjoying strong overseas growth, while also benefiting from China’s adoption of 5G technology and gaining domestic market share from competition. Huawei Technologies Co.
– With the help of Charlie Zhu and Amanda Wang
