China’s Xi Jinping: ‘Buy Chinese Stocks With Confidence’

Xiaomi, a Chinese appliance manufacturer, has revealed the price of its first self-produced electric vehicle, sparking interest as related stocks show strength.

On the 28th, Xiaomi officially launched its first self-produced electric vehicle, the SU7 series. The standard model is priced at approximately $29,900. The SU7, produced by Xiaomi, can travel up to 435 miles on a single charge, and its maximum speed reaches 130 miles per hour.

Its zero-to-sixty time is 5.28 seconds, and a 15-minute charge can power a 217-mile journey. In addition to the olive green, Gulf Blue, and Ash Gray, six new colors have been unveiled, causing a stir among car enthusiasts. As Xiaomi’s electric vehicle rapidly gains traction, domestic and foreign stock prices are soaring.

On the 29th, the Chinese stock market rebounded for the second day, maintaining an upward trend. Notably, Xiaomi-related stocks stood out. Stocks related to Xiaomi’s electric vehicles, such as Shanghai Carthane Co, Qingdao Hi Tech, Xiamen Xindeco, and China Machinery Huanyu Certification and Inspection, have hit their ceiling.

On the 28th, Xiaomi announced the official launch of its electric vehicle model and secured 50,000 contracts within 30 minutes, indicating a successful initial popularity surge.

A representative from Guojin Securities in China said, “Xiaomi’s popularity is incredible. The anticipated price of Xiaomi’s electric vehicle was below $41,500, but the market price announced by Xiaomi exceeded expectations. It seems to have captured consumers’ hearts with its cost-effectiveness.” Xiaomi plans to launch additional SUV models by the end of this year, and sales are expected to increase significantly next year, predicting a solid performance for Xiaomi-related stocks throughout this year.

According to the Korea Exchange, as of the 29th, the stock price of MPLUS, a company that makes secondary-battery-assembly automation equipment and has clients in Korea and China, increased by 3.42% to $8.51 in after-hours trading. The after-hours trading volume was 6,205 shares, and the increase is speculated to be due to the news of Xiaomi’s first electric vehicle launch.

The surge in stock prices due to Xiaomi’s electric vehicle launch isn’t limited to China. Companies benefiting from Xiaomi’s electric vehicle are also emerging in Korea.

According to the Korea Exchange, as of 5 p.m. on the 1st (local time), the stock price of Woory Industrial Co. is trading at $16.52, up 16.66% from the previous day. As a result, the stock price of Woory Holdings, the largest shareholder, is also rising.

Woory Industrial Co. previously announced it would supply heaters to Xiaomi’s electric vehicles. It is speculated that the news that it has secured Chinese customers such as Shanghai Automotive, NIO, Xiaopeng, and Juji Automobile has influenced the stock price rise. Woory Industrial Co. operates local factories in Tianjin and Dalian, China.

Kyung Chang Industrial is also trading at $2.02, up 22.15% from the previous day. This is because KCW, a parts subsidiary of Kyung Chang Industrial, has been selected as a lever part supplier for Xiaomi’s electric vehicles manufactured by the Chinese state-owned Beijing Automotive Group.

This has drawn the attention of investors, and interest in stocks affected by the launch of Xiaomi’s electric vehicles is growing domestically and abroad.

Meanwhile, remarks made by Chinese President Xi Jinping are mentioned alongside the strong performance of the stock due to Xiaomi’s electric vehicle. Last year, in the face of a slowing Chinese economy, President Xi expressed his will to recover in the new year. He emphasized manufacturing, saying, “Some companies have had a hard time. We will work to restore economic momentum and create jobs.”

He also mentioned Xiaomi’s electric vehicle launch and BYD’s existing electric vehicle business, saying that they have surpassed Tesla’s sales in China. He remarked that it is okay to trust and buy Chinese stocks.