Xiaomi's market valuation crosses $100 billion mark: Report

A man looks at a Xiaomi Tv at the Chinese technology company Xiaomi booth at the China National Convention Centre in Beijing on September 3, 2020. (PC-AFP/Wang Zhao)

Chinese smartphone maker Xiaomi Corp.'s market value breached past the $100 billion mark on December 23, giving a reason for founder Lei Jun to rejoice. The Chinese firm has been looking to cross the figure since it listed two years ago.

Xiaomi's stock surged as much as 9.1 percent on Wednesday at the Hong Kong stock exchange. With this, the Chinese smartphone maker emerged as 13th stock in the city’s benchmark Hang Seng Index to have a market capitalisation above $100 billion. Xiaomi ended the trading day 7.6 percent higher, with a market value of $103 billion (HK$802 billion), Bloomberg reported.

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In May 2018, Xiaomi had eyed a $100 billion valuation for its initial public offering. However, it could reach only the half level on its debut, while its shares traded below the HK$17 offering price during the last two years as a public firm.

Following its announcement of being added to the Hang Seng Index, the stock of Xiaomi gained momentum in August 2020. Its shares' price doubled and during China’s “Double 12” shopping festival, Xiaomi's December's stock jumped by 20 percent. Experts state that proposal to boost the weighting of companies in the Hang Seng Index from 5 percent to 8 percent may lead to further gains for firms like Xiaomi.

Earlier in November, Xiaomi reported its fastest quarterly sales growth in two years. The firm is one of the leading Chinese tech firms enjoying strong growth globally. China’s adoption of 5G technology and win over domestic market share from competitor Huawei Technologies Co. has helped Xiaomi to reap profits.