(Reuters) - China's smartphone maker Xiaomi (OTC:XIACF) Corp said on Thursday it will buy back shares up to HK$10 billion ($1.29 billion) on the open market under a repurchase program, even as its stock price continues to slump.
Xiaomi's shares have lost more than a third of their value since the company was blacklisted by the United States in mid-January for its alleged ties to the Chinese military, which mandatorily forces American investors to divest their holdings.
"The board believes that a share repurchase in the present conditions will demonstrate the company's confidence in its own business outlook...and create value to the shareholders," Xiaomi said in a statement.
The company's board had approved a resolution to buy back a maximum of 10% of its shares in June last year, worth about HK$31 billion at the time.
($1 = 7.7590 Hong Kong dollars)