Xiaomi Defends Valuation With Fresh Buyback as HSBC Flags a Smartphone Trough

Xiaomi repurchased 4.11M Class B shares for about HK$99.2M as its stock closed 2.8% lower at EUR 2.76 amid a Hong Kong tech selloff.

Hong Kong's growth stocks ran into a wall of selling on Friday, and Xiaomi was no exception. The shares closed 2.8% lower at EUR 2.76, dragged down by a broad retreat in technology names on the Hong Kong exchange.

The pressure came from several directions at once. Rising US Treasury yields, mounting anxiety over costlier energy and stubborn inflation all sapped investors' appetite for risk. Making matters worse, mainland exchanges were shut for the holidays, cutting off the usual capital flows through the Southbound trading links and thinning out demand.

Management Steps In With a Nine-Digit Buyback

Xiaomi's leadership moved quickly to counter the slide. In a mandatory disclosure to the Hong Kong bourse, the company confirmed it repurchased 4,112,000 of its own Class B shares on Friday, with the transactions executed at prices between HK$23.98 and HK$24.26 apiece. The total outlay came to roughly HK$99.238 million (HKD 99,237,673.20).

The move is a familiar signal of confidence in the company's intrinsic value — a message that carries extra weight given the stock has shed 36% since the start of the year. Even so, the broader market mood remains hostage to macroeconomic headwinds.

EV Arm Keeps Delivering

On the operating side, the picture is brighter. Xiaomi Auto announced on Thursday that it shipped more than 40,000 electric vehicles during September 2026, underscoring how quickly the group is scaling up its manufacturing capacity in the EV arena. The company did not disclose a precise total or break the figure down by model.

Founder Lei Jun put the first-month sales of the Sky Nomad at over 10,000 units, roughly a month after the vehicle's market debut.

HSBC Starts Coverage With a Buy

Institutional attention followed on Wednesday, when HSBC initiated coverage of Xiaomi with a "Buy" rating and a price target of HK$33.20. The British bank's analysts framed the current year as a transition period, pointing to higher memory chip prices as a drag on margins in the legacy smartphone business. HSBC also projected that Xiaomi's global smartphone revenue could fall 10% in 2026.

Product Offensive Spans Hardware and New Markets

Xiaomi is pressing ahead on the hardware front regardless. On September 23 it unveiled the Xiaomi 18 Pro smartphone series alongside a suite of connected devices. The company has also set October 7 for the release of further delivery data.

Its push into new territories is gathering pace too. On Wednesday the group showcased the Redmi Note 17 smartphone line in Nigeria, a range built around four distinct models. According to media reports, the next launch for the series is imminent, with an official sales start in South Africa slated for October 8.