Xiaomi’s Hong Kong-listed shares rose more than 7% Friday morning after the release of its massive stock buyback plan.

The Chinese smartphone maker said in an exchange filing late Thursday that it will buy back shares worth up to HK$10 billion ($1.3 billion) on the open market as a part of a repurchase plan that the company’s board approved in June last year to buy back a maximum of 10% of its shares worth about HK$31 billion at the time.

“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 the stock filing.

The repurchase plan comes as Xiaomi’s shares have lost more than a third of their value since the U.S. placed it on a backlist in January for its alleged ties to the Chinese military. Xiaomi has consistently hit back at the U.S. allegation saying it is not linked to China’s military.

In January, Xiaomi rose to the third spot in terms of smartphone shipment in China with a 16% share, filling the void left by the one-time domestic market leader Huawei, which has suffered a significant smartphone sale contraction since its loss of access to major chip suppliers due to U.S. sanctions, according to Counterpoint Research.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Xiaomi Breaks Into Top Three Smartphone Brands in Latin America for First Time as Huawei Falls