Xiaomi announces HK$2.5 billion buyback as competition and cost pressures weigh on stock

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Chinese tech giant Xiaomi saw its shares pop over 2% in trading on Friday after it announced a stock buyback program worth up to HK$2.5 billion ($321 million).

The repurchase plan comes as the electric vehicle and smartphone maker looks to reassure investors amid intensifying competition, rising component costs and recent product safety concerns.

Despite Friday’s gains, Xiaomi’s shares are down over 8% so far this year, reflecting sustained pressure on its valuation.

The company has regularly repurchased shares in recent years, including 4 million shares for HK$152 million on Jan. 13.