Xiaomi shares slide after co-founder Lin Bin unveils stake sale plan

Xiaomi (1810) fell on Monday after the company disclosed that co-founder and vice-chairman Lin Bin plans to gradually sell part of his stake.

Shares of the Chinese smartphone maker slid as much as 3.3 percent to HK$37.94.

Xiaomi said Lin has informed the board that he plans to begin selling Class B ordinary shares from December 2026. Under the plan, Lin would sell shares worth no more than US$500 million (HK$3.9 billion) in any 12-month period, with total disposals capped at US$2 billion.

Based on Xiaomi's closing price last Wednesday, the proposed sales would represent about 1.84 percent of the company's total issued share capital.

The company said proceeds from the disposals will mainly be used to establish an investment fund, adding that Lin remains confident in Xiaomi's long-term prospects and will continue to serve the group over the long term.