Since the June low, shares of the Chinese electronics manufacturer Xiaomi have risen in price by more than 60%, increasing its capitalization by $20 billion and turning the issuer into the best participant in the Hang Seng Tech index. Xiaomi's success is partly due to the failures of rival Apple in the Chinese market.

Asia's largest smartphone market is still recovering after years of decline, with local brands outperforming US-based Apple. The recently unveiled Xiaomi 14 smartphone family has already received more than 1 million pre-orders just days after its announcement. Investor optimism for Xiaomi is fueled by rumors of the imminent announcement of the first electric car of this brand and enthusiasm for artificial intelligence technologies.

According to analysts at JPMorgan Chase & Co, Xiaomi shares may continue to grow in the next six months. Representatives of Morgan Stanley and Citigroup additionally expect a revival in the Chinese smartphone market starting next year. Apple smartphones are losing popularity in China, as many users do not see progress in the technical characteristics of this year's new products.

The new Huawei flagship received unique camera functions and the ability to communicate via satellite in emergency situations, while the Xiaomi 14 family offers the latest Qualcomm processor, an advanced camera, and a new HyperOS operating system. Bloomberg analysts predict that next year Xiaomi will be able to squeeze out competitors such as Oppo and Vivo. According to Counterpoint Research, Xiaomi was the only one among the five largest smartphone manufacturers that managed to increase product shipments both sequentially and year-over-year in the third quarter. Along with the shares of Xiaomi itself, the shares of its suppliers and contractors are also rising in price.