Xiaomi’s founder Lei Jun can finally celebrate that the Chinese smartphone maker’s market value has surpassed the $ 100 billion mark, a figure his company missed when it debuted two years ago.
It is one of the few big Chinese tech companies enjoying strong international growth.
The firm’s stock advanced 9.1% on Wednesday to a new record in Hong Kong, making it the 13th value in the Hang Seng Index to reach a market capitalization of more than $ 100 billion.
The title ended the day with an advance of 7.6% and a market value of 802,000 million Hong Kong dollars (US $ 103,000 million).
Xiaomi, which generates most of its sales from its smartphone business, had initially proposed a $ 100 billion valuation in its initial public offering, people close to the deal said in May 2018.
But it only reached half that level on its debut, and the stock traded below the HK $ 17 offer price for most of the first two years as a listed company.
The fortunes of the company changed in August following the announcement that Xiaomi would be added to the Hang Seng index.
The title has advanced more than 100% since then. Strong sales during China’s “Double 12” shopping festival have fueled a 20% jump in stocks this month.
And a proposal to increase the weighting of companies like Xiaomi in the Hang Seng index from 5% to 8% could result in higher profits.
Xiaomi reported the fastest quarterly sales growth in two years in November, while earnings beat analyst estimates.
It is one of the few large Chinese tech companies enjoying strong international growth while benefiting from the adoption of 5G technology in China and gaining share in the domestic market from its competitor Huawei Technologies Co.