The firm’s stock rallied as much as 9.1% Wednesday to a
fresh record in Hong Kong, making it the 13th stock in the city’s benchmark
Hang Seng Index to have a market capitalization above $100 billion. 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 eyed a $100 billion valuation for its initial
public offering, people close to the deal said in May 2018. But it was only at
half that level upon its debut, and shares traded below the HK$17 offering
price for most of its first two years as a public company.
The stock saw its fortunes reverse in August, after it was
announced that Xiaomi would be added to the Hang Seng Index. Shares have more
than doubled since. Strong sales during China’s “Double 12” shopping festival
have helped fuel this month’s 20% stock jump, and a proposal to boost the
weighting of companies like Xiaomi in the Hang Seng Index to 8% from 5% could
lead to further gains.
Xiaomi in November reported its fastest quarterly sales
growth in two years, while earnings beat analysts’ estimates. It remains one of
the few major Chinese tech firms to enjoy strong growth abroad while also
benefiting from China’s adoption of 5G technology and winning domestic market
share from competitor Huawei Technologies Co.