Smartphone maker Xiaomi Corp. co-founder and President Lin Bin Tuesday made a public promise that he will not dispose of any of his stockholding in the company over the next year, in hopes of restoring market confidence in Xiaomi.
Lin sold 41 million Xiaomi shares with a value of HK$373 million ($47.5 million) over three straight days last week, rattling market confidence as the company’s shares remain on a downward track. Lin’s stake in Xiaomi declined to 2.09% after the sales from 2.33%.
Since the company’s Hong Kong debut in July 2018, Xiaomi’s shares have lost nearly half of the offering value, reflecting concerns over the company’s slowing growth. The stock closed at HK$8.65 Thursday, making its market cap HK$207 billion.
Lin said in a post on his personal Weibo social media account that he is “full of confidence in Xiaomi’s future” and believes the company’s business model will be a success.
On Tuesday Lin also transferred 3.69 million Xiaomi shares to his family foundation designated for charitable donations. The shares, worth HK$32 million based on Tuesday’s market price, will not be subject to the nonsale promise.
Contact reporter Han Wei (firstname.lastname@example.org)