Xiaomi Rallies After Announcing USD1.3 Billion Share Buyback Plan
Tang Shihua
DATE:  Mar 12 2021
/ SOURCE:  Yicai
Xiaomi Rallies After Announcing USD1.3 Billion Share Buyback Plan Xiaomi Rallies After Announcing USD1.3 Billion Share Buyback Plan

(Yicai Global) March 12 -- Xiaomi’s shares soared after the Chinese handsets and gadgets giant said it will spend as much as HKD10 billion (USD1.3 billion) to repurchase its stock following a slide in its value since the start of the year.

After rallying as much as 9.8 percent earlier today, Xiaomi [HKG: 01810] closed 4.1 percent higher to end the week at HKD22.75 (USD2.93), double its year-earlier price.

Xiaomi’s board will carry out the decision reached at a shareholders’ meeting last June to buy back up to 10 percent of the firm’s stock after March 25, the Beijing-based company said in an exchange filing yesterday. 

Buybacks remove some of a listed company’s publicly traded shares from the market, thereby buoying or raising the stock’s price. Xiaomi is hoping to bolster investor confidence as its stock has lost 36 percent since reaching a record high close of HKD35.30 on Jan 5.

Xiaomi’s stock had climbed after the company’s domestic rival Huawei Technologies met US resistance. The former Trump administration limited Huawei’s access to US-made technologies by adding it to a so-called Entity List in May 2019.

In the fourth quarter of last year, Xiaomi became the world’s third-biggest smartphone supplier by shipments after Samsung Group and Apple, according to data from IDC. For the full year, it ranked fourth, still behind Huawei.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Stock Buyback,Smart Phone,IToT,Xiaomi