Xiaomi founder Lee Jun can finally rejoice after the market value of Chinese smartphone makers crossed $ 100 billion (approximately Rs. 7,36,000 crores), his company falling far short when it was listed two years ago.
The company’s stock rose 9.1 percent on Wednesday, setting a new record in Hong Kong, with a market capitalization of $ 100 billion (approximately Rs 7,36,000 crore) as the 13th stock in the city benchmark Hong Seng Index. It ended with a market value of HKD802 billion (approximately Rs 7,60,800 crore), up 7.6 per cent.
Xiaomi, Which generates more sales from its smartphone business, first saw a value of $ 100 billion (approximately Rs 7,36,000 crore) for its initial public offering, people close to the deal said in May 2018. However this is only half the level at the beginning, and the shares traded lower than HKD 17 (approximately Rs. 150), which has been priced as a public company for the first two years.
The stock reversed its fortunes in August after Xiaomi announced that it would be included in the Hong Seng Index. The shares have doubled since then. Strong sales during China’s “Double 12” shopping festival fueled a 20 percent stock jump this month, and a proposal to increase the weight of companies such as Xiaomi in the Hong Seng Index from 5 percent to 8 percent could lead to further gains.
In November, Xiaomi recorded the fastest quarterly sales growth in two years, while earnings exceeded analysts’ expectations. It is one of the few leading Chinese tech companies to achieve strong growth abroad, benefiting from China adopting 5G technology and gaining domestic market share from competitors. Huawei.
© 2020 Bloomberg LP
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