Shares in Xiaomi Corporation surged more than 8% in Hong Kong trading today, hitting a three-month high, after the Chinese electronics and electric vehicle maker reported better-than-expected quarterly results and announced a major EV delivery milestone. The stock closed at HK$32.40, its highest level since late April, as investors cheered the company's accelerating growth in both its core handset business and its fledgling automotive division.
Xiaomi reported second-quarter revenue of approximately CNY 92 billion (£10.1 billion), representing a 32% increase compared to the same period last year. The company also confirmed it had delivered its 100,000th SU7 electric vehicle, a milestone it originally targeted for the end of 2026 but achieved several months early. The news sent the stock soaring and lifted the broader Hang Seng Tech Index by 1.8%.
For UK investors, the rally in Xiaomi shares underscores the growing appetite for Chinese tech stocks despite ongoing geopolitical tensions. However, analysts at London-based research firm Redburn warned that the stock's price-to-earnings ratio of 28 times forward earnings remains elevated compared to Western peers. 'Xiaomi is executing well, but the market is pricing in a lot of optimism,' said senior analyst Sarah Chen. 'The EV business is still loss-making, and competition in China is intensifying.'
The broader FTSE 100 was little changed on the day, edging up 0.1% to 8,276 points, as investor focus remained on UK inflation data due later this week. However, the rally in Asian tech shares provided a modest tailwind for the FTSE 250, which gained 0.3%, and lifted shares in UK-listed semiconductor firms such as IQE and Siltronic.
Xiaomi's strong performance also highlights the growing importance of the electric vehicle sector to the company's valuation. The SU7 sedan, launched in March 2024, has been a key driver of investor interest, with Xiaomi now targeting 350,000 deliveries in 2027. For UK pension holders with exposure to emerging market funds, the stock's rise adds a welcome boost, though volatility remains a risk given regulatory uncertainties in China.