AsianFin -- Xiaomi Corp.'s shares hit a fresh record high in Hong Kong on Friday, fueled by the launch of new products and the positive impact of China’s nationwide subsidy program, which improved the company’s sales outlook.

The stock surged 12% this week after Xiaomi announced it would release two new products — the high-end SU7 Ultra vehicle and the 15 Ultra phone — by the end of the month. Additionally, the company’s existing smartphone sales have benefited from increased consumer subsidies in China.

HSBC Holdings analyst Frank He raised Xiaomi’s smartphone shipment forecasts by 2% for 2025 and 3% for 2026. He noted that the inclusion of wearable devices in the subsidy program would provide a further growth catalyst for Xiaomi. He also pointed out that the company stands to benefit from the rapid decline in AI costs, driven by the launch of its AI model, DeepSeek R-1.