TECH

Xiaomi Co-Founder Plans $2 Billion Share Sale to Back New Fund

By Gu Zhaowei

Published: Dec. 29, 2025 4:54 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Lin Bin. Photo: VCG

Xiaomi Corp. co-founder and vice chairman Lin Bin plans to sell up to $2 billion worth of his stake in the Chinese consumer electronics giant to bankroll a new investment fund company.

The divestment plan, announced in a filing on Sunday, marks the largest cash-out by the company’s second-largest shareholder and contrasts sharply with Xiaomi’s ongoing efforts to prop up its sliding share price through aggressive buybacks. Lin intends to cap his sales at $500 million every 12 months starting in December 2026. Despite the planned reduction, Lin stated he remains confident in the group’s prospects and committed to his long-term service at the company.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Xiaomi co-founder Lin Bin plans to sell up to $2 billion of his stake, about 15% of his holdings, capping sales at $500 million per year starting December 2026.
The sale coincides with Xiaomi’s HK$5 billion buyback program as shares have dropped over 30% since late September, erasing HK$550 billion in value.
Factors include negative reactions to the Xiaomi 17 smartphone, EV safety concerns, margin pressures, and reduced smartphone shipment targets.

AI generated, for reference only

Who’s Who

Xiaomi Corp.: Xiaomi Corp. co-founder and vice chairman Lin Bin plans to sell up to $2 billion of his stake to fund a new investment company. This divestment, the largest by Xiaomi's second-largest shareholder, contrasts with the company's efforts to boost its stock through buybacks. Lin, despite reducing his holdings, remains confident in Xiaomi's future. The company has faced challenges from device similarities to Apple, EV safety concerns, rising memory costs, and reduced EV tax incentives.

Google Inc.: Lin Bin, co-founder and vice chairman of Xiaomi Corp., previously served as an engineering director at Google Inc. He co-founded Xiaomi with Lei Jun and was once considered the company's second-in-command, managing operations, marketing, and the smartphone division.

Microsoft Corp.: Lin Bin, co-founder and vice chairman of Xiaomi Corp., previously worked as an engineering director at Microsoft Corp. He co-founded Xiaomi with Lei Jun, and his background includes experience at both Microsoft and Google Inc.

Apple Inc.: Apple Inc. is mentioned in the context of Xiaomi's smartphone release. The Xiaomi 17 smartphone series drew criticism for its close resemblance to Apple Inc.'s iPhone, which contributed to a sell-off of Xiaomi shares.

AI generated, for reference only

What Happened When

Before August 2019：: Lin Bin held his stake in Xiaomi without significant divestment.

August 2019：: Lin Bin cashed out HK$373 million over three days before committing to a one-year moratorium on sales.

September 2020：: Lin Bin sold 350 million Class B shares in an off-market block trade and promised not to sell further shares for five years.

June 2025：: Xiaomi announced a plan to buy back up to 10% of its stock.

By September 2025：: Five-year lock-up period after Lin Bin's 2020 sale expired.

September 25, 2025：: Xiaomi released the Xiaomi 17 smartphone series, which drew criticism for its resemblance to Apple’s iPhone.

Late September 2025 to Late November 2025：: Xiaomi shares plummeted more than 30%, wiping out over HK$550 billion in market value.

October 2025：: A fatal collision involving a Xiaomi EV prompted safety concerns; Xiaomi shares dropped nearly 6%.

By November 2025：: Warnings of margin pressure in Xiaomi’s smartphone and EV sectors emerged.

Before Dec. 23, 2025：: Xiaomi repurchased 134 million shares for over HK$5 billion in the 19 trading days leading up to this date.

December 24, 2025：: The reference closing price of Xiaomi shares was HK$39.22 ($5.05) per share.

2025-12-28：: Lin Bin announced a plan to sell up to $2 billion worth of his Xiaomi stake.

AI generated, for reference only

GALLERY

: Gallery: Powerful Quake Strikes Off Japan

NEWSLETTERS

Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription

PODCAST

Caixin Deep Dive: Chinese Local Governments Risk Replicating Mistakes of LGFVs

00:00

00:00/00:00

MOST POPULAR

1: In Depth: A Lost Masterpiece’s Return Exposes Scandal at a Top Chinese Museum

2: China Launches $14 Billion State Fund to Back Strategic Tech Industries

3: Offshore Yuan Breaches 7.0 Per Dollar to Hit 15-Month High

4: In Depth: Memory Shortage Creates Space for China’s Lesser-Known Chipmakers

5: Weekend Long Read: When China Speed Meets Brazil Rhythm

SPONSORED