(Yicai Global) Aug. 28 -- Xiaomi's shares kept on rallying for the second day today as investment banks have bet on the Chinese smartphone maker that could benefit from the woes of domestic rival Huawei Technologies.

Xiaomi's stock price [HKG: 1810] surged 11.7 percent to HKD23.85 (USD3) this morning, the highest ever. The Beijing-based company went public at an initial offering price of HKD17 in July 2018. The shares had soared 11.4 percent yesterday after the firm released its second-quarter earnings, revealing slowing profit growth.

Many investment banks, including Goldman Sachs, Citic Securities, and Morgan Stanley, have recently raised their target prices of Xiaomi or given it a 'buy' rating as the firm could expand its market share in China amid Huawei's chip supply problems due to a purchasing ban in the US.

Editor: Emmi Laine