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China’s Xiaomi surges on blowout results, boosting new Hong Kong tech benchmark

  • Xiaomi jumps nearly 13 per cent after profit beats estimates
  • Other two stocks – Wuxi Biologics and Alibaba – to be added to Hang Seng Index on September 7 also rise

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A Chinese investor reads a newspaper as she monitors stock prices at a brokerage house in Beijing. Photo: AP
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Chinese smartphone maker Xiaomi soared on Thursday on stronger-than-expected earnings, but it failed to boost the overall mood in Hong Kong, where the benchmark sagged as the coronavirus continued to weigh on sentiment.

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Xiaomi, which will be added to the Hang Seng Index on September 7, reported profits that beat estimates and jumped nearly 13 per cent at one point, closing up 11.4 per cent . Last week, on news it would be included in the benchmark, it gained 18.4 per cent.

The Hang Seng Index fell 0.8 per cent to 25,281.15, as it continues to struggle to kick above the 25,500 mark. On Monday, it rose above that resistance level for the first time in more than a month.

The Shanghai Composite Benchmark turned up to close ahead 0.6 per cent at 3,350.

Three stocks, including Xiaomi, will be added to the Hang Seng Index on September 7. The others are Alibaba, the e-commerce giant that owns the South China Morning Post, and pharmaceutical giant Wuxi Biologics. Alibaba, which is the top shareholder of the coming IPO of Ant Group, rose 0.1 per cent while Wuxi Biologics shot up nearly 4 per cent.
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Xiaomi rocketed up after reporting that its profit attributable to shareholders shot up more than 30 per cent.

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