Xiaomi Shares Find Stability Amid Broader Market Weakness

Xiaomi KYG9830T1067

In a trading session marked by significant declines across Hong Kong's main index, Xiaomi Corporation's stock demonstrated notable resilience. The company's shares closed at HKD 38.02, registering a modest decline of 0.37%. This performance stood in stark contrast to the Hang Seng Index, which fell 1.17% to finish at 26,149 points. Pressure on the broader market was largely driven by substantial losses in major technology stocks, including Meituan and Alibaba, which dropped 3.35% and 2.2% respectively. Xiaomi's relative stability appears anchored by two key corporate developments: the commencement of pre-orders for an updated version of its SU7 electric vehicle and a recently announced, substantial increase in its research and development budget.

Beyond its automotive ambitions, Xiaomi's management is actively supporting shareholder value through a significant capital allocation program. The company has disclosed two major share repurchase transactions this week:
* On January 5, the company bought back 3.8 million shares, involving approximately HKD 149.3 million.
* On January 6, a further 3.85 million shares were repurchased, with a volume of around HKD 150 million.

These buybacks reduce the number of shares available for public trading and are widely interpreted as a signal of management's confidence in the company's intrinsic value. In a volatile market environment, such activity can also act as a buffer against more severe downward price movements.

Concurrently, Xiaomi has laid out an aggressive R&D roadmap. The company plans to invest 200 billion Yuan (roughly USD 28 billion) into research and development over the next five years. Strategic focus areas for this expenditure include artificial intelligence, proprietary operating systems, and integrated ecosystems for electric mobility, summarized by the company's "Human x Car x Home" initiative.

Electric Vehicle Ambitions Take Center Stage

The primary catalyst for investor attention is the automotive division. Pre-orders for the refreshed SU7 model began recently, with the official market launch scheduled for April 2026. The vehicle will be offered in three variants, with a starting price of 229,900 Yuan (approximately USD 32,900).

From a technical perspective, Xiaomi emphasizes enhancements in driving range and charging capabilities. The flagship Max version will feature an 897-volt architecture, designed to enable ultra-fast charging—a critical competitive factor in China's crowded EV marketplace.

During the product presentation, CEO Lei Jun reaffirmed ambitious delivery targets. The company aims to deliver 410,000 vehicles in 2025, building to roughly 550,000 units in 2026. This 2026 target represents a projected 34% year-over-year increase, underscoring the division's growth trajectory.

Market Perspective and Forward Look

Given the pronounced weakness in the broader Hong Kong market, Xiaomi's minor share price decline is being viewed as a comparatively strong performance. The confluence of a new product cycle, clearly defined growth targets in the automotive sector, and a long-term commitment to R&D spending has provided insulation against the sell-off affecting other major tech stocks.

Moving forward, market observers will closely monitor demand indicators for the SU7 facelift. The response to pre-orders will serve as a crucial early gauge for assessing the feasibility of the 2026 delivery goal of 550,000 vehicles. In the near term, the technical support zone around HKD 38 is seen as key, while the market's focus gradually shifts toward the official vehicle launch in April.