- summary:
- Xiaomi’s stock price is up more than 3 percent in 2025, but that momentum could be disrupted by tariff wars between China and the United States.
Xiaomi’s share price remained on an upward trajectory on Tuesday, rising 3.4% at the time of writing to trade at HK$35.90. The stock’s uptrend was supported by Donald Trump’s slow action on tariffs on goods imported into the US from China on his inauguration day.
Bonnie Chan, CEO of the Hong Kong Stock Exchange, said Monday that the market in China will remain vigilant about possible changes in trade relations between the two countries. The Hong Kong Hang Seng Index closed Tuesday’s session at +0.9% as investors remained optimistic that China and the United States may reach a compromise on trade relations.
Xiaomi’s stock price is up 3.1% year to date, and is up 16.9% in the past month, as optimism builds on the growth of the electric vehicle (EV) market. The company sold 135,000 cars in 2024, exceeding its target of 130,000 cars. Additionally, Xiaomi (HKG: 1810) has a much higher target of 300,000 in 2025. However, its plans to venture into the chip industry could attract greater scrutiny from the US government. This front is of particular concern because of its potential implications for national security.
Smartphones and electronics remain among Xiaomi’s flagship products, and could also be included in Trump’s tariff bracket. Therefore, the coming weeks may see significant fluctuations in Xiami’s stock prices.
Xiaomi stock price forecast
Momentum in Xiaomi’s share price suggests buyers are in control, with the pivot at HK$35.00. This is likely to see the stock face the first resistance level at HK$36.10. However, stronger momentum will break above this level and potentially test the second barrier at HK$36.85.
On the downside, a move below the HK$35.00 level would shift momentum in favor of sellers’ control. The first support is likely to be at HK$34.25. Also, breaking this level below this level will invalidate the bullish trend theory. Also, this momentum will likely push Xiaomi’s price down to test the next support at HK$33.30.
