Xiaomi Inc. shares dropped on the first day of its IPO listing, but quickly rose by 13.1 percent the following day, with yesterday’s closing price standing at HK $19. The total market capitalization reached 425.15 billion Hong Kong dollars (around $54.17 billion).

Among Chinese internet giants, Xiaomi’s current market capitalization approximates that of JD.com. According to the closing data of U.S. stocks on Monday, the market capitalization of JD.com was around $55.89 billion. Xiaomi’s founder, Lei Jun, said on his microblog that the last two days have felt like a dream.

Xiaomi Inc. was listed on the Hong Kong Stock Exchange on July 9. On its debut, its opening price stood at HK $16.6, falling 2.35 percent from its issue price of HK $17. When asked about the loss, Lei said that it was due to recent trends being unfavorable. He added that the long-term price is more important than the short-term price.

As to the logic behind the rise of Xiaomi’s stock price after its debut, analysts give two possible reasons. First, at the celebration party held on the evening of its debut, Lei said that he would double the investment of those who bought Xiaomi’s stock on the first day. The statement elevated the market’s confidence in Xiaomi. Second, Xiaomi will be included in Hong Kong’s Hang Seng Index (HSI), which means Xiaomi Inc. can be invested in through the Shanghai-Hong Kong Stock Connect program by A-share investors.

Explaining that many people still don’t understand Xiaomi, Lei said the company is an innovative one, with many products available. He added it’s a hardware company, an E-commerce company and an Internet company. “Our thought is simple. We provide whatever Xiaomi fans need, step by step. Thanks to efforts over the past eight years, we have made more than one hundred products.”