Business & Economy

Xiaomi stocks soar over share buyback plans

Shanghai, China, Mar 12 (EFE).- The shares of Chinese technology firm Xiaomi increased considerably in the morning session Friday at the Hong Kong Stock Exchange after it announced a share buyback plan worth HK$10 billion (around $1.3 billion).

At 11.30 am local time, each share was worth 7.32 percent more than when the trading session opened earlier during the day.

The company announced overnight its share buyback plan, which had been authorized by shareholders in June 2020 for the company to retake ownership of a maximum of 10 percent of available equity capital.

Xiaomi said in the statement that this operation would demonstrate the company’s confidence in its business prospects despite its current circumstances.

The circumstances referred to in the document are the loss of more than 33 percent of its stock market value since mid-January, when the US announced its inclusion in a blacklist of companies with alleged links with the Chinese military.

According to a decree signed by former United States President Donald Trump, American investors will have to get rid of their investments in the blacklisted companies, which also includes tech firm Huawei, video surveillance equipment manufacturer Hikvision, chip maker SMIC, and state-owned firms in sectors such as aeronautics, nuclear, energy and telecommunications.

Xiaomi has maintained that it is not owned, affiliated with or controlled by the Chinese military, and two weeks after its inclusion in the blacklist, the company filed a lawsuit against the US Department of Defense and Treasury, claiming the decision was illegal and calling for it to be revoked.

In its recent statement, the tech firm has stressed that Xiaomi has sufficient financial resources to carry out this repurchase while also maintaining a sound financial position. EFE

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