Xiaomi Group (小米集团) to implement HK$20 billion share buyback plan

Deal details

Xiaomi Group (小米集团) said its board has adopted a new market share repurchase programme allowing the company to buy back up to HK$20 billion of its Class B ordinary shares over the next 12 months, it has been reported. The new plan will run until the conclusion of the 2027 annual general meeting; the group’s current repurchase authority lapses after the 2026 AGM on June 2. The move was announced as the company seeks to manage capital allocation and support its share price.

Market context

It has been reported that Xiaomi’s stock has seen a sharp reversal from earlier highs — the share price once climbed to about HK$61 but has since fallen to roughly HK$30, a near-halving of value. Year-to-date through May 22 the group has reportedly repurchased about HK$8.4 billion of stock, a sum already larger than last year’s total buybacks. Is this a bid to stabilise the price and reassure investors? Buybacks are a straightforward lever for management to signal confidence in intrinsic value.

Why it matters

This announcement comes against a backdrop of softer investor sentiment across China’s tech sector, where regulatory shifts and geopolitical tensions have weighed on valuations and capital plans. Reportedly, management believes the stock is attractively priced; critics will watch whether the programme prioritises shareholder returns over longer-term investment. For international investors less familiar with mainland corporate structures: Xiaomi’s dual-class share structure and its Hong Kong listing mean buybacks are one of the clearest mechanisms available to directly influence market liquidity and per-share metrics.