Xiaomi's Shares Rise After New Share Buyback Announced

By Jiahui Huang

Xiaomi's shares rose in Hong Kong after the Beijing-based consumer electronics giant announced plans to buy back its shares.

The company, which has wide interests ranging from mobile phones to electric vehicles, said late Thursday that it was launching an automatic share buyback program worth up to 2.5 billion Hong Kong dollars, equivalent to US$320.6 million.

Its shares rose 2.2% to HK36.02 in early trade on Friday, outperforming the 0.1% rise for Hong Kong's Hang Seng Tech Index.

Xiaomi has been on a buyback spree this year, spending a total of HK$2.12 billion in almost daily transactions since January 5, before Thursday's announcement of a new automatic buyback program.

Automatic buybacks authorizes an independent broker to buy the company's shares based on predetermined parameters.

"Buyback's often have a short-term impact on share prices but the company's buyback prices aren't necessarily a good indicator of a long term buy price," said Dan Baker, senior equity analyst at Morningstar.

The move suggests the company is trying to boost market confidence in the company despite the challenging environment.

Xiaomi's shares have been under pressure since September, due to concerns over the company's EV production capacity and smartphone profit margins. Memory chip prices have been rising steadily and could potentially lead to higher prices for Xiaomi's smartphones.

That said, Xiaomi's EV sales has been robust despite slowing demand in China's auto market, Xiaomi's EV deliveries saw a strong pick-up at the end of 2025, with about 50,000 units sold a month.

Xiaomi is launching its new SU7 model in April and analysts are expecting strong orders for the next-generation of SU7 luxury electric sedan, Daiwa analyst Kelvin Lau wrote in a recent note.

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

(END) Dow Jones Newswires

January 22, 2026 23:04 ET (04:04 GMT)