Repurchase is still very helpful to listed companies. For example, after Xiaomi Company announced the repurchase, its share price immediately rose by 5%. According to media statistics, since its listing, Xiaomi seems to like to buy back shares, with billions of RMB each time, especially in the case that Xiaomi's share price has been lower than the issue price for a long time in previous years. Up to now, Xiaomi has repurchased its own shares for more than 40 times, and basically it has some effect every time. After the news was announced, Xiaomi's share price fluctuated. This time, Xiaomi announced a repurchase plan of 65.438 billion yuan, which caused the stock price to skyrocket and the market value rose by 60 billion yuan in one breath.

In fact, in the short term, the stock price rise is stimulated by the repurchase news, but in the long run, it is brought about by the company's performance to the good fundamentals. Especially after its biggest domestic competitor encountered difficulties, Xiaomi's market share increased and its profit margin also improved. In addition, overseas sales of Xiaomi's mobile phones are also rising, which is beneficial in many aspects, and ultimately drives Xiaomi's share price to rise.

In fact, Lei Jun, the founder of Xiaomi, also revealed last year that he was ashamed because Xiaomi's share price was lower than the issue price all the year round after listing. This also explains why Xiaomi likes to buy back so much. Lei Jun seems to be very sensitive to Xiaomi's low share price. He doesn't want people who invest in Xiaomi to lose money.

References:

In the past two years, the outside world is no stranger to Xiaomi's frequent share repurchase. According to public information, Xiaomi has made 4/kloc-0 repurchases since its listing, and the total number of repurchased shares is close to 400 million shares. Industry analysts believe that Xiaomi executives hope to use the stock repurchase strategy to better reflect the actual value of the company, thus boosting the stock price.

Even after 4 1 repurchase, Xiaomi has never achieved its goal. Until recently, with the collective promotion of many good news, the liquidity of the capital market continued to flood in, and Xiaomi's share price dropped sharply.

Wind data shows that on March 16, southbound funds bought HK$ 5.267 billion in Hong Kong stocks, among which Tencent Holdings, China Construction Bank and Xiaomi Group ranked in the top three, with net purchases of HK$ 130 1 000, HK$ 769 million and HK$ 673 million respectively.