This article only represents the author's own views.

As Hong Kong’s stock market looks set to fall for a fourth consecutive year, blue chip smartphone maker Xiaomi Corp. (1810.HK) stands out as a bright spot in an otherwise bleak setting. While most companies have fallen this year, Xiaomi’s shares are up more than 40% year-to-date as it gains market share, even as the broader global smartphone market contracts.

Xiaomi shipped 41.8 million smartphones in the third quarter, up 4%, year-on-year, lifting its market share by 0.5 percentage points to 14.1%, according to its latest quarterly report released last week. That was its third consecutive quarterly gain in market share after several years of declines, and helped the company’s adjusted quarterly profit nearly triple to about 6 billion yuan ($840 million) – well ahead of market expectations for 4.7 billion yuan.