Hong Kong, 23 January 2026 – Xiaomi Corporation on Thursday unveiled a HK$2.5 billion (approx. US$321 million) automatic share buyback plan aimed at stabilising its share price after a steep decline, reflecting mounting pressures across its core smartphone, electric vehicle (EV) and chip-driven businesses.
The buyback programme, authorised by shareholders and commencing on 23 January 2026, will see Xiaomi repurchase its Class B shares on the Hong Kong Stock Exchange, deploying a broker to execute the repurchases under predefined parameters. The move follows sustained share price weakness, which has seen Xiaomi’s stock trade near multi-month lows amid broader sell-offs in Chinese technology equities this year.
Investors welcomed the announcement with an initial uptick in early trading, as the planned buybacks signal management’s confidence in the company’s intrinsic value and commitment to supporting shareholder returns. The programme stands as the most significant repurchase move by Xiaomi in recent times, coming on the heels of near-daily share repurchases in January that totalled several hundred million Hong Kong dollars.
However, the buyback also comes against a backdrop of persistent operational challenges. Rising memory chip costs have squeezed margins in Xiaomi’s smartphone business, a core revenue engine, while intensified competition and price pressures in China’s EV market have weighed on investor sentiment. Analysts have noted that the repurchase may help prop up the stock in the short term, but fundamental issues including component shortages and sectoral overcapacity remain headwinds.
The scale of the repurchase underscores broader market dynamics in 2026, where share buybacks have become a favoured tool among major Chinese corporates to bolster valuations amid liquidity shifts and heightened competition for investor capital. Xiaomi’s initiative follows a trend of buybacks by tech peers as stock price pressure persists in the mainland and Hong Kong markets.
