Xiaomi Sheds 2.8% as US Yields and Pricier Crude Weigh on Hong Kong Tech

Xiaomi closed down 2.8% at EUR 2.76 as US yields and oil hit Asian tech. HSBC calls 2026 a transition year; September EV deliveries topped 40,000.

Rising US Treasury yields and firmer oil prices combined to knock Asian technology shares off balance at the close of the trading week, and Xiaomi was no exception. The Chinese hardware and EV maker finished Friday down 2.8% at EUR 2.76, extending a slump that has now erased 36% of its value since the start of the year.

The retreat played out against a broad selloff in Hong Kong, where the Hang Seng Tech Index lost more than two percent. A holiday lull in mainland China meant capital inflows from the northbound channel were absent, thinning out demand just as global bond markets were turning less friendly. Reuters attributed the sour mood to US government bond yields touching multi-decade highs, a move that rippled straight into Asia's growth-heavy corners.

Why Higher Yields Bite Growth Names

Expensive crude and climbing US borrowing costs gave investors in Hong Kong little reason to add risk on Friday, with high-multiple technology counters taking the brunt. Higher yields raise refinancing costs and tend to compress the present value of future corporate earnings — a mechanical headwind that market watchers flag as the single biggest driver of the sector's recent softness. Xiaomi's decline, in that light, reads less as a verdict on the company than as a symptom of wider caution toward Asian tech.

Sentiment found little relief from Beijing either. Market participants voiced doubts about how much punch the government's announced stimulus package will actually pack, and as the exchange reopened after the holiday, traders trimmed exposure to the largest technology names first.

HSBC Sees 2026 as a Bridge Year

Set against that macro gloom, the operational picture looks sturdier. HSBC analysts have framed the current 2026 as a transition period, expecting key operating metrics to improve as the year progresses. Looking further out, the bank projects a recovery in smartphone margins in the following year — a rebound that would breathe fresh life into Xiaomi's core handset business.

The bank also pointed to a wave of new model launches as a potential catalyst for the company's electric-vehicle expansion, giving the automaking push a clearer runway than the share price currently suggests.

September Deliveries Clear 40,000

Xiaomi's automotive arm keeps building momentum. Xiaomi Auto handed over more than 40,000 vehicles in September, a figure that underscores how quickly the unit is scaling. Management stayed tight-lipped on the finer points, though: no exact total for cumulative deliveries was disclosed, nor any breakdown by model variant. Investors continue to watch the segment closely, aware that standing up car manufacturing from scratch demands heavy capital outlays.

Buybacks and a Solid First Half

While the stock struggled, the company put its own cash to work. According to the half-year report, Xiaomi repurchased a total of 388,187,200 Class B shares on the open market by the relevant cut-off date, spending roughly HK$11,955,921,076 on the program.

The firepower came from a first half of 2026 in which Xiaomi booked group revenue of RMB 208.1 billion and an adjusted net profit of RMB 12.3 billion. Healthy as those numbers are, they have lately been drowned out by the broader rate and growth worries steering sentiment across the market.