Xiaomi's Buyback Machine Grinds On as Hong Kong Tech Selloff Bites

Xiaomi closed at 2.75 euros, down 2.8%, as macro headwinds hit Asian tech. The company repurchased 1,929,000 shares for HKD 50,056,872.

Xiaomi shares gave up 2.8% on Friday to close at 2.75 euros, caught in a sector-wide retreat across Asian trading floors that had nothing to do with the company itself. The Hang Seng benchmark tumbled as much as 3% at one point after returning from a public holiday, dragging the broader technology complex down with it.

The culprits were familiar macro headwinds: rising US Treasury yields, firmer oil prices and dashed hopes for meaningful stimulus out of Beijing. With mainland Chinese investors locked out by the holiday closure, the usual stabilizing bid from southbound capital was simply absent. No company-specific bad news emerged to explain the drop — the selling was indiscriminate.

Management Steps In With a Nine-Figure Buyback

Rather than sit on its hands, Xiaomi's leadership reached for the corporate wallet. On September 25, the company repurchased 1,929,000 of its own shares for a total consideration of HKD 50,056,872. Media reports indicate the acquired stock is to be cancelled outright, permanently shrinking the share count and lifting the intrinsic value of what remains.

Buyback programs of this kind are widely read as a signal that management considers its own valuation too cheap — a message that tends to carry extra weight when markets are jittery. Even so, the move proved no match for the broader downdraft sweeping Asia's major exchanges into the weekend.

New Hardware Lands Ahead of the Autumn Season

On the operational front, Xiaomi used a September 23 product event to roll out its autumn lineup. The headline act was the Xiaomi 18 Pro smartphone, flanked by the Xiaomi 18 Pro Max, the Xiaomi Pad 9 tablet series, the Xiaomi Band 11 fitness tracker and the 41mm Xiaomi Watch S5 smartwatch. The refresh spans the core pillars of the company's ecosystem — phones, tablets and wearables — as it looks to defend market share against rivals while consumer sentiment at home remains subdued by broader economic conditions.

The vehicle division added its own momentum: Xiaomi Auto delivered more than 40,000 cars in September, a figure that underscores how quickly the EV business is scaling.

HSBC Starts Coverage With a Buy

Analysts offered a counterweight to the gloomy tape. HSBC Global Investment Research initiated coverage of Xiaomi on September 30 with a Buy rating and a price target of HKD 33.20, implying substantial upside for a stock that has been unable to shake off broader market pressure.

Geopolitics added another layer. According to a Reuters report dated September 18, Xiaomi executives are being considered for a possible Chinese business delegation accompanying President Xi Jinping on a planned visit to Washington. No formal invitation or finalized participant list had been confirmed at that point — the prospect remains a diplomatic option rather than a done deal, though it would underscore the company's standing in Beijing's industrial policy priorities if it materializes.

A 36% Slide Sets the Backdrop

For all the product news and buyback activity, the market's verdict so far this year has been harsh. Xiaomi stock is down 36% since January, a decline that reflects persistent institutional caution toward Chinese technology names. Macro forces are dictating the short-term direction, even as the company pushes forward on multiple business fronts.

Investors looking for clarity on whether that growth is financially sustainable will get their answer in the fourth quarter. Media reports peg the next quarterly earnings release for November 16, 2026.