Investing.com-- Xiaomi (OTC:XIACF) Corp (HK:1810) shares surged to a record high on Friday, propelled by investor optimism that China’s nationwide subsidy program will significantly boost sales of electric vehicles (EVs) and smartphones.
Hong Kong-listed Xiaomi shares jumped nearly 6% to HK$43.05, their highest level ever.
The company’s market capitalization surpassed HK$1 trillion (US$128.4 billion) for the first time, reflecting its strengthened position in the tech and automotive sectors.
Xiaomi’s stock rally was due to its strategic alignment with government initiatives aimed at stimulating consumer spending on electronics and green technology.
The positive sentiment extended to other technology and automotive stocks poised to benefit from the subsidy program.
PC maker Lenovo Group (HK:0992) shares also jumped more than 7% to reach their highest level since 2015.
In the electric vehicle sector, BYD Co (HK:1211) shares rose 5% amid expectations that the company will make autonomous-driving technology more accessible to the mass market.
Geely Automobile Holdings (HK:0175) shares climbed nearly 9%, as investors speculated that the subsidy program would bolster sales across China’s EV industry.
China’s subsidy program is expected to provide a short-term boost to retail spending, benefiting companies like Xiaomi, Lenovo, BYD, and Geely.