Xiaomi founder Lei Jun’s HK$100 million share purchase sparks stock rebound

[HONG KONG] Xiaomi founder Lei Jun’s purchase of about HK$100 million (S$16.8 million) worth of company stock may help bolster sentiment in the smartphone maker after shares tumbled more than 30 per cent from its July peak.

The announcement, disclosed late on Monday (Nov 24), lifts Lei’s stake to 23.26 per cent, and sent shares rallying as much as 6.3 per cent, the biggest one-day jump in five months.

Analysts say the move, which is unusual as it involves the founder instead of just the company, underscores efforts to stabilise the stock and limit downside going forward.

“It’s hard to say whether this will be a concrete bottom, but I would say the signalling that a drop from here is limited is strong,” said Jiang Liangqing, a fund manager at Zhuhai Greenbamboo Private Fund Management.

Xiaomi has a history of well-timed buybacks, executing a number of repurchases since 2022 that ultimately resulted in market gains. In June, a new buyback programme announcement and EV model launch helped fuel a rally over the following weeks.

Lei’s buyback of 2.6 million shares are in addition to the 21.4 billion shares remaining in order to complete the June buyback programme. Shares are up more than 17 per cent this year. BLOOMBERG