Xiaomi Shares Rise Sharply After Founder Raises Stake

By Jiahui Huang

Xiaomi's shares rose sharply after its chief executive and founder Lei Jun bought the company's shares, which have been weighed by concerns of rising memory-chip prices and electric-vehicle production capacity constraints.

Lei bought 2.6 million Xiaomi shares in the open market for $100.3 million Hong Kong dollars, equivalent to $12.9 million, the Beijing-based company said in a statement late Monday. Lei's stake in the company rose to 23.26% after the purchase.

The move boosted market sentiment and sent the Chinese smartphone and home appliance maker's shares 4.0% higher on Tuesday afternoon, outperforming the Hang Seng Tech Index's 0.5% gain.

Xiaomi's shares have been under pressure recently as analysts raised concerns about the company's EV production capacity and smartphone margins. Its shares have lost more than 20% of their value since September.

Although Xiaomi reported a third-quarter earnings beat as its net profit more-than doubled on higher revenue from its Internet-of-Things business and fast-growing EV operations, market participants remain worried about the effect of rising memory-chip prices on its smartphone segment.

Xiaomi expects pressure on the smartphone business's profitability in the near term due to rising memory-chip prices, HSBC Global Research analysts wrote in a recent note. The company said it would prioritize raising its average selling price over shipment growth to help alleviate cost pressures, they added.

That said, late last month, Xiaomi rolled out an introductory offer for a newly launched smartphone after customers expressed disappointment over its higher-than-expected starting price.

Revenue growth in its IoT segment is expected to moderate significantly next year as government subsidies taper off and a high base of comparison weighs. Last year, China introduced a nationwide trade-in program for consumer goods that is set to end in December.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 25, 2025 02:36 ET (07:36 GMT)