Xiaomi’s share price has reached a new high in over a year after reports emerged about its possible inclusion in Hong Kong’s benchmark stock index, the Hang Seng Index. The company’s share price has been rallying up since December 10 and reached a year-high price of HK$ 13.26 ($1.71) earlier today.
This speculation has driven up Xiaomi’s market capitalization to HK$314 billion (US$40.4 billion) today. To recall, its market share dipped to just over US$28 billion back in August 2019. But it’s still well below the US$50 billion valuation at the time of its IPO back in July 2018.
Xiaomi’s share price has steadily increased since the launch of its Redmi K30 5G smartphone. It is the world’s cheapest 5G smartphone in the market right now and comes with exclusive access to one of the cheapest 5G plans in the world. Its inclusion in the Hang Seng Index would be yet another milestone for the company.
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Hang Seng Index is the Hong Kong Stock Exchange’s benchmark index and features the top 50 stocks on the exchange. The operator of the Hang Seng index is considering whether companies with weighted voting rights or secondary listings should be included in the index, leading to speculations about Xiaomi making it to this major index.
Note that Xiaomi was the first company with dual-class of shares to be listed on the Hong Kong Stock Exchange in 2018. The HKSE had made changes to its listing rules just a few months before Xiaomi’s IPO, allowing companies with weighted voting rights to be listed on the exchange.
The Hang Seng Index of the HKSE includes top Chinese companies like Bank of China, China Unicom, China Telecom, and China Netcom.