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Xiaomi Corp shares soared in Hong Kong after a U.S. court banned the Defense Ministry from restricting U.S. investments in the Chinese smartphone giant.
Shares of the Consumer Electronics Industry Company rose nearly 12% on Monday, the biggest gain of the day in about a month.
Under the Trump administration, the Defense Department placed Xiaomi on a list of companies with suspected ties to the Chinese military, resulting in financial restrictions that were due to go into effect next week. But on Friday, U.S. District Judge Rudolph Contreras temporarily suspended the ban, siding with Xiaomi in a lawsuit that argued the move was “arbitrary and volatile” and stripped the company of its litigation rights. regular.
Contreras said Xiaomi would likely win a full repeal of the ban early in the litigation and a preliminary injunction to prevent the company from suffering “irreparable harm.”
After the ban was announced, the smartphone maker faced the prospect of being pulled from U.S. stock exchanges and removed from global benchmarks.
In turn, Xiaomi said he plans to continue asking the court to declare his association with the military illegal and revoke the classification permanently, according to the company’s statement.
Xiaomi was founded over a decade ago by billionaire businessman Lee Jun, and Xiaomi has attracted a group of American investors such as Qualcomm, BlackRock and Vanguard, according to data compiled by Bloomberg and viewed by Al Arabiya.net.
Xiaomi is the world’s third largest smartphone maker by size and in the third quarter it overtook Apple in smartphone sales, according to the International Data Corporation.
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