Xiaomi Buyback Fails to Offset Hong Kong Tech Slide as CLSA Trims Forecasts

Xiaomi shares fell 2.2% on Friday, closing at EUR 3.34, as a broad retreat swept Chinese technology stocks in Hong Kong. The selloff hit AI and technology hardware names across the board, with Reuters linking the sector-wide weakness to Nvidia-related concerns and general uncertainty in the tech space. Xiaomi ranked among the large-cap casualties of the session.

Capital Returns Continue Unabated

Even as the stock slid, the Beijing-based group kept up its share repurchase programme. Xiaomi bought back roughly 1.73 million of its own shares for cancellation on Friday, spending about HKD 49.8 million in aggregate. The move followed a similar buyback on Thursday. Separately, the company disclosed the issuance of 1,200 new Class B shares under its equity incentive scheme.

CLSA Cuts Targets but Keeps Faith

The cautious mood on the trading floor was matched by revisions on the research side. On Thursday, CLSA lowered its estimate for Xiaomi's adjusted net profit in 2026 by 13%, pointing to softer consumer demand in China. The brokerage trimmed its 2027 forecast by 17% for the same reason. For the third quarter of 2026, CLSA expects adjusted net profit to fall 62% year on year.

Despite those reductions, CLSA reaffirmed its "Outperform" rating and held its price target at HKD 35. UOB Kay Hian had already moved in the opposite direction on 2 November, cutting its target from HKD 26.20 to HKD 25.90 while keeping a "Hold" rating on the stock.

Board Set to Review Q3 Numbers

Attention now shifts to 24 November, when Xiaomi's board is scheduled to deliberate and approve the unaudited results for the third quarter of 2026. The same review will cover the company's performance for the first nine months through 30 September 2026.