Xiaomi stock dips after co-founder Lin Bin unveils US$2 billion share sale plan

Xiaomi shares came under pressure after the smartphone maker said its co-founder and vice-chairman plans to sell up to US$2 billion worth of shares starting from December 2026, stoking investor concerns over future supply.

The company said in a voluntary filing on Sunday night that Lin Bin intended to offload class B shares, with sales capped at US$500 million in any rolling 12-month period and the total disposal amount not to exceed US$2 billion. Xiaomi said the proceeds were mainly earmarked for setting up an investment fund, adding that Lin remained confident in the group’s long-term prospects and would continue to serve the company.

Xiaomi shares fell as much as 3.3 per cent to HK$37.94 shortly after the market opened, before paring losses to close 1.6 per cent lower at HK$38.58. The stock underperformed the benchmark Hang Seng Index, which lost 0.7 per cent.

Lin controlled about 1.88 billion class B shares and 448 million class A shares, according to Xiaomi’s interim report. The stake was valued at more than US$10 billion, based on Xiaomi’s market capitalisation as of Friday’s close.

“The investment fund company may focus on emerging technology incubation which will likely benefit the Xiaomi AIoT ecosystem,” analysts including Kyna Wong from Citi Research said in a research note, adding that Lin’s shares disposal “is a neutral event but may have sentiment impact”.

The analysts set a target price of HK$50 for Xiaomi’s shares by the end of 2026, citing its solid long-term visibility, but also cautioned that shares could fall short if competition in the smartphone market intensified, expenses linked to new store roll-outs rose, or a faster climb in interest rates triggered a valuation de-rating.