Xiaomi Shares Gain Momentum on Multiple Catalysts

Xiaomi KYG9830T1067

A confluence of strategic initiatives and strong operational performance is providing significant tailwinds for Xiaomi's stock as the week concludes. The Chinese tech giant is attracting fresh investor interest through a new blockchain partnership, aggressive share buybacks, and impressive electric vehicle sales figures. This blend of forward-looking technology narratives and concrete financial engineering is drawing market attention.

A clear demonstration of management's confidence is visible in the company's actions on the Hong Kong Stock Exchange (HKEX). Recent filings reveal substantial share repurchases on consecutive days:

• On December 10, the company bought back 2.4 million shares for 100.5 million Hong Kong dollars (HKD).
• This was followed on December 11 by the repurchase of 2.3 million Class B shares for 97.2 million HKD.

Since the buyback program was authorized in June 2025, Xiaomi has retired nearly 103 million of its own shares. Transactions of this scale provide technical support for the share price and serve as a strong signal of the board's belief in the company's intrinsic value.

Complementing this internal support, substantial capital flowed into the stock from mainland China. Through the "Southbound Trading" link, Xiaomi securities saw a net inflow of approximately 1.3 billion HKD on Thursday, making it the most active and sought-after stock within the Shenzhen-Hong Kong Stock Connect that day and outpacing other major tech names.

In European trading, the positive sentiment was reflected as the share price closed at 4.65 euros in Germany. The stock shows a solid 12-month gain of over 21%, with an increase of around 9% since the start of the year. While the price remains about one-third below its 52-week high, it trades well above the low of 3.70 euros.

From a technical perspective, the shares are trading slightly below the 50-day moving average of 4.78 euros and more notably below the 200-day average of 5.64 euros. A Relative Strength Index (RSI) reading of nearly 64 indicates a solid upward trend without entering overbought territory. However, the high annualized 30-day volatility, exceeding 42%, underscores that significant price swings remain a feature.

Strategic Push into Blockchain and Fintech

On December 11, Xiaomi announced a collaboration with the SEI Development Foundation, marking a strategic step into Web3. A central component of this partnership is the planned pre-installation of the SEI crypto wallet on new smartphones starting in 2026, excluding devices sold in China and the United States, directly targeting its international user base.

In parallel, the company plans to integrate stablecoin payment capabilities, such as USDC, into its MiPay platform. This move is poised to simplify entry into Web3 applications for millions of users and strengthen Xiaomi's positioning within the fintech sector. For the market, this initiative signals an intent to better monetize the smartphone ecosystem beyond traditional hardware margins.

Electric Vehicle Business Gains Traction

The company's foray into electric vehicles (EVs) is increasingly contributing to its growth narrative. November 2025 delivery data reveals that Xiaomi's YU7 model secured the second position in China's competitive New Energy Vehicle (NEV) SUV segment, with 33,729 units delivered. Only the Tesla Model Y, with 47,132 units, ranked higher.

This performance demonstrates Xiaomi's ability to advance in a fiercely contested market, surpassing several established automakers. For investors, it provides tangible evidence that the automotive venture is evolving beyond a conceptual project into a business generating substantial volume.

Valuation and Macroeconomic Support

Market analysts are taking note of this positive momentum. Simply Wall St recently raised its fair value estimate for Xiaomi to 58.00 HKD. Based on a recent share price of 43.29 HKD, this model suggests further upside potential, acknowledging that such estimates are inherently approximations.

The broader macroeconomic environment also offers support. The Renminbi has reached a new 52-week high against the US Dollar. A stronger domestic currency, coupled with a recovery in Chinese equity markets, generally bolsters demand for tech stocks listed in Hong Kong. Xiaomi's diversified profile—spanning smartphones and AIoT, fintech via crypto integration, and the EV business—differentiates it from pure-play hardware manufacturers and may allow it to capture this demand more effectively.

Near-Term Catalysts and Technical Levels

In the short term, markets will monitor whether the share repurchase program continues with similar intensity. The volume already executed has created a noticeable support level; sustained buybacks could reinforce this effect.

From a fundamental standpoint, the CES in Las Vegas in early January 2026 will be a key event to watch. New AI features and chip generations, like the Snapdragon X2 Elite, showcased there will serve as critical reference points for Xiaomi's upcoming smartphone and AIoT product pipeline.

On the charts, a key test will be whether the stock can achieve a convincing close above the resistance zone around 44 HKD. Combined with the ongoing capital management actions and robust EV delivery numbers, the roadmap for the coming weeks appears defined. If the flow of positive developments persists, a move toward the medium-term moving averages could be the next realistic step for the share price.