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XiaomiHong Kong-listed shares rose more than 7% on Friday morning after the publication of its massive share buyback plan.
The Chinese smartphone maker said in an exchange filing late Thursday that it will buy back shares worth up to HK $ 10 billion ($ 1.3 billion) on the open market as part of a buy-back plan that the board of directors of the company approved in June last year to buy back. a maximum of 10% of its shares worth about HK $ 31 billion at that time.
“The board believes that a share buyback under current conditions will demonstrate the company’s confidence in its own business outlook … and create value for shareholders,” Xiaomi said at the share presentation.
The buyback plan comes as Xiaomi’s shares have lost more than a third of their value since the United States placed them on a fund list in January over their alleged ties to the Chinese military. Xiaomi has consistently responded to the US accusation saying that it is not linked to the Chinese military.
In January, Xiaomi rose to third place in terms of smartphone shipping in China with a 16% share, filling the gap left by the former domestic market leader. Huawei, which has seen a significant contraction in smartphone sales since losing access to major chip vendors due to US sanctions, according to Counterpoint Research.
Contact Reporter Ding Yi ([email protected])
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