Xiaomi founder’s $13m share buyback boosts market sentiment

Xiaomi founder Lei Jun has purchased about HK$100 million (US$12.9 million) worth of company shares, increasing his stake to 23.3%.

The move comes after Xiaomi’s stock fell over 30% from its July peak.

After the announcement, shares rose as much as 6.3%, marking the largest single-day gain in five months.

Lei’s purchase is notable as founder-led buybacks are less common than company-led ones.

In June, the company announced a new buyback program and launched an EV model, which contributed to a subsequent rally.

Lei’s recent purchase covers 2.6 million shares, while 21.4 billion shares remain under the June buyback program.

Xiaomi shares have climbed more than 17% in 2025 so far.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Xiaomi has run several buybacks since 2022, and those often came before market gains, which formed a pattern.
A June buyback notice landed alongside an Electric Vehicle (EV) model launch, then the stock rallied, so repurchases have tended to lead price strength.
Lei Jun bought HK$100 million of shares, a move that stands apart from routine company buybacks because founder-led buying is rarer and carries a clearer signal.
Shares rose up to 6.3% on the news, the biggest one-day gain in five months. The move came after a 30% drop from July peaks. Investors read founder buys as credible signals.

Investors can use Hong Kong Exchanges and Clearing (HKEX) Form 3A disclosures. These filings report director or chief executive interests in shares. Filers must submit within the required window.
Screen for founder purchases during pullbacks of 20–30%, similar to Xiaomi’s drop from July peaks, to find entries when insiders buy into weakness.
Data vendors and quantitative funds, investment managers that use data-driven models, can build models that rank Hong Kong tech stocks using recent insider activity plus company buybacks.
Xiaomi’s June authorization left 21.4 billion shares for repurchase, a hard number that lets investors track execution versus limits across Hong Kong names.