Shares of the Chinese tech giant Xiaomi rose 3% on Friday following the announcement of a share buyback program worth up to HKD 2.5 billion ($321 million), CNBC reports.
The company announced the buyback amid increasing competition, rising component costs, and recent concerns over product safety. Despite the gain on January 23, Xiaomi shares have fallen more than 8% since the beginning of the year.
In recent years, the company has regularly conducted buybacks, including on January 13, when 4 million shares were repurchased for HKD 152 million. The new program will start on January 23 and will be executed on the open market, subject to favorable market conditions and the necessary approvals from regulatory authorities.