Understanding the Market | Xiaomi Corporation-W rises over 5% again, Credit Suisse states the company's ecosystem is unique and there is no risk of ADR delisting

Xiaomi Corporation-W rose over 5% again, as of the time of writing, up 5.74%, reported at HKD 46.95, with a transaction volume of HKD 7.114 billion. Jefferies released a research report stating that Xiaomi remains the firm's top pick among Chinese tech stocks, citing reasons such as: the company has strong growth, benefiting from its unique ecosystem; U.S. tariffs are expected to have a minimal impact on its business; and Xiaomi has no risk of delisting from American Depositary Receipts (ADR). The firm maintains a "Buy" rating on Xiaomi with a target price of HKD 63.25. Goldman Sachs previously published a research report indicating that Xiaomi's electric vehicle factory Phase II is ready to start production, likely beginning trial production next month. As the order volume for the Xiaomi SU7 has recently returned to a more normal level, it is expected that the Phase II factory's production will effectively enhance Xiaomi's productivity for the Xiaomi SU7 and YU7 series of electric vehicles. It is currently believed that the YU7 can still be officially launched as planned between June and July, maintaining the sales forecast for the YU7 for this year and next at approximately 85,000 and 360,000 units, respectively