The capitalization of the Chinese company Xiaomi for the year reached the level of $ 100 billion — its shares have almost tripled in price. Bloomberg reports this.
Shares of Xiaomi, as a result of an increase in their exchange value by 9.1% for the day, became the thirteenth securities owned by a company with a capitalization of more than $ 100 billion and included in the Hang Seng index. In fact, by the close of trading, Xiaomi’s capitalization reached $ 103 billion.
This growth was facilitated by the inclusion of Xiaomi in the Hang Seng stock index, the recent autumn sales of smartphones, and the decision of the administration of the Hong Kong stock exchange to review the share of Xiaomi shares in the Hang Seng index in the direction of increase.
However, the difficulties of competing with Huawei also played a role. Due to US sanctions, the company has difficulties with the distribution of smartphones outside of China. Also, Huawei is now unable to produce its own chips-even had to go on sale Honor. Xiaomi, meanwhile, has been building up its power not only in China but also abroad.