On 3 February, the first day of trading after the Chinese New Year (CNY) holidays in Hong Kong, Chinese tech giant Xiaomi (trading as Xiaomi Corp) saw a historic increase of price in shares on the Hong Kong Stock Exchange (HKEX). Its market value grew to over 1 trillion HKD (128.41 billion USD) for the first time at one point. The following morning, its value surged to over 1 trillion HKD again.
Xiaomi shares reached up to 40 HKD (5.14 USD) per share, the highest it’s ever been, up from 39.85 HKD (5.12 USD) the day before. The previous highest point was on 24 January and in January 2021. Xiaomi was listed at HKEX in 2018. The surge is widely attributed to the strong performances of Xiaomi’s core businesses, such as smartphones and EVs. IDC data shows that Xiaomi phones ranked number 3 in the global smartphone market share at 13.5%, after Apple’s 18.7% and Samsung’s 18%. However, Xiaomi excels with its 15.4% year-on-year (YoY) growth against drops of market share from both Apple and Samsung. Xiaomi also delivered 135,000 cars in 2024 and has a target to deliver 300,000 in 2025.
In fact, despite the tariffs from the United States and China’s retaliatory measures, the Hang Seng Index of Hong Kong rallied Monday before jumping 3% on Tuesday, both led by AI and other tech-related stocks (up 5% on Monday) such as semiconductor and cryptocurrency concept stocks. This is no doubt the result of DeepSeek’s disruptive advancement just before CNY. Other factors include the underlying recovery of the property sector, a surprise rally of gold-related stocks and the optimism of future trade talks between the United States and China.
Xiaomi’s strong performance, in combination with the market confidence in the Chinese tech sector, likely caused its current surge. With its company value increasing 215% in the past 5 years and its manufacturing capacity continuing to grow, there might be more highs to be witnessed from the company.
