On 15th September, Xiaomi’s vice chairman and executive director, Lin Bin, voluntarily announced that within the next five years, Xiaomi would not sell its beneficially owned shares at its discretion. And he also declared that the company would only sell the previously arranged 120 million Class B shares. In the announcement, it was also revealed that Lin Bin is planning to resell 350 million Class B shares through Goldman Sachs. And the remaining shares will be locked for the next five years. So, from 15th September, Lin Bin and his controlling entity will not be capable of selling any more shares except the 120 million Class B shares that belong to the family charity fund.


Amount Of Shares

Expert calculations show after the selling of these 350 million Class B shares. The remaining shares will reach 11.4% of the total share capital of 10%. These remaining shares will be blocked for the next five years. According to security market analytics, this long lock-in period is rare, and this confidence of Lin Bin may be beneficial for the company’s long term development. Here, we would like to mention that Xiaomi’s stock price is continuously rising in the past six years. From the 10th-anniversary press conference of Xiaomi, where the company disclosed the Q2 financial report, the company has notably developed in the stock market. The shares increased by up to 118% and reached 26.95 Hong Kong dollars per share.

Previously Founder Securities, Goldman Sachs, CITIC Securities, Citibank, and Daiwa Morgan Stanley successfully issued research reports. All of them gave positive reports about the company, such as “buy,” “overweight,” and “outperform.” They also enhanced the target price by issuing the research reports. CICC stated that Xiaomi will stand among the top three mobile phone manufacturers across the world. Among all the companies, CICC also increased the target price of Xiaomi by 100% to HK$30. It is highly an optimistic sign about the improvement of Xiaomi in the share market.


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