Xiaomi logo at an exhibition in Hangzhou, Zhejiang Province, China on November 1, 2025.
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.
Critics of stock buybacks argue that the practice can boost share prices without improving a company's underlying business. They say buybacks divert cash from other investments, such as employee pay, factory expansion, job creation and innovation.
Xiaomi's latest buyback begins Jan. 23 and will be executed on the open market, subject to market conditions and regulatory approvals, according to a filing with the Hong Kong Stock Exchange late Thursday.