By Yifan Wang
Xiaomi Corp. shares rose sharply on Monday, amid growing hopes for a recovery in China's smartphone market from the country's latest surge in Covid-19 infections.
Shares of the Chinese smartphone maker gained as much as 13% to 13.84 Hong Kong dollars (US$1.76). The stock was last up 10% at HK$13.46.
The rise came after analysts from investment bank Jefferies noted initial signs of recovery in China's handset market in a research note early Monday. The analysts' estimates, based on official sales data, suggest that China's total smartphone shipment in May fell 9% compared with the same month a year earlier, a significant recovery from double-digit percentage declines in the previous four months.
"May shipment is down much less than previous months," the analysts said, "Another implication for a smaller decline in May handset shipment is that excess inventories have been largely cleared."
Still, Jefferies warned of remaining uncertainties and a weak overall market.
"While near-term inventory pressure could be less, let's not forget both May 2022 and year-to-date shipment volumes are the lowest in the last seven years," the bank's analysts said.
Write to Yifan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires