Xiaomi Shares Historic Surge as China’s Subsidy Plan Boosts Investor Confidence
Xiaomi Corp.’s shares jumped to a record high on Friday, driven by investor confidence that China’s national subsidy scheme will greatly increase sales of smartphones and electric vehicles (EVs). The price of Xiaomi’s Hong Kong-listed shares surged by about 6% to reach their highest point ever, HK$43.05. The company’s improved standing in the IT and automotive industries is reflected in its market value, which for the first time exceeded HK$1 trillion (US$128.4 billion).
China’s Green Tech Push Propels Xiaomi, BYD, and Geely to New Highs
Because of its strategic synergy with government measures targeted at encouraging consumer expenditure on electronics and green technologies, Xiaomi’s stock rose. Positive sentiment also permeated other tech and car stocks that stand to gain from the subsidies scheme. Businesses including Xiaomi, Lenovo, BYD, and Geely stand to gain from China’s subsidy program, which is anticipated to temporarily increase retail spending.
- The shares of PC giant Lenovo Group also surged over 7% to hit their highest level since 2015.
- BYD Co.’s stock increased 5% in the electric vehicle market as investors anticipated the business would make autonomous driving technology more widely available.
- Geely Automobile Holdings’ stock increased by about 9% as investors hoped the subsidy scheme would boost sales in China’s EV market.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment