Xiaomi Group told the Hong Kong Stock Exchange on 22 January 2026 that it has signed an agreement with an independent broker to implement an automated share repurchase programme of up to HK$2.5 billion. The broker will buy Class B ordinary shares on the exchange under pre-set parameters, and Xiaomi said any shares purchased under the plan will be cancelled.
The company described the move as a demonstration of confidence in its business outlook and in the overall interests of shareholders. Automated repurchase plans allow listed companies to execute buys within predetermined rules and time windows, reducing the risk of perceived insider trading while enabling steady purchases even through short trading blackouts.
The latest announcement comes on the heels of an active repurchase campaign: since the start of 2026 Xiaomi has stepped up buybacks, moving to shrink its public float and support metrics that matter to investors. Management has framed these programmes as a capital-allocation choice designed to return value and signal that management views the shares as undervalued.
Canceling repurchased shares is an important detail. Cancellation reduces the company’s outstanding share count, which mechanically boosts per-share metrics such as earnings per share and dividend per share prospects, and increases entrepreneurs’ and remaining shareholders’ ownership percentages. For a dual-class or founder-led technology group, such moves affect both financial ratios and the structure of investor control and liquidity in the stock.
The decision will be read through multiple lenses. For investors it is a near-term support for the stock and a sign that management prefers share repurchases to other uses of capital. For the market it raises familiar trade-offs: returning cash to lift valuation versus deploying cash into R&D, product development and the longer-term bets that underpin Xiaomi’s competitiveness across smartphones, IoT devices and nascent automotive ambitions. Hong Kong regulators’ rules permitting automated buybacks make such programmes an increasingly common tool for companies seeking disciplined repurchases without running afoul of trading-window constraints.