(Yicai Global) March 15 -- Xiaomi’s shares powered ahead after the Chinese smartphone and gadgets maker won a temporary reprieve from a US trade ban.

Xiaomi [HKG: 1810] soared as much as 12 percent in Hong Kong today before settling at HKD24.35 (USD3.14), a 7 percent gain.

China’s top smartphone seller sued the US government in January after it added the Beijing-based company to a no-buy list for US investors over alleged connections to the Chinese military. But on March 12 a US judge granted a temporary halt to the ban, saying the case against Xiaomi was “deeply flawed.”

Xiaomi said it will continue to push for an eventual ruling that can fully invalidate the administrative order.

Global index provider MSCI said it would not exclude Xiaomi’s Class-B shares from its MSCI ACWI or MSCI China indexes and will pay attention to the firm’s development in the future.

Shares in Xiaomi had slumped 30 percent after it was included in the blacklist by the US defense department on Jan. 14, Citic Securities said in a research report, adding that the share price is predicted to return to a level that reflects Xiaomi’s fundamentals.

The US may adjust its approach to Chinese tech firms in future, noted Pang Ming, chief economist at Huaxing Securities Hong Kong, adding that geopolitical risks and uncertainties will remain in the near future. China-US relations will not get worse, but are also not likely to improve significantly, Pang said.

The US defense department has added 44 Chinese companies to the blacklist, including telecoms equipment giant Huawei Technologies and chipmaker SMIC, both of which have also denied any military links.

Editors: Zhang Yushuo, Tom Litting