Xiaomi Corp announced that it will buyback $1.53 billion worth of its share, in a move aimed at its cash-management strategy to support its floundering stock. Post the buyback news, Xiaomi shares jumped climbed nearly 7 per cent.

The decision follows Xiaomi’s move to scrap the plan of offering equity in China, a move aimed at attracting mainland investors.

Cash and cash equivalents for the company accounted for 34.9 billion yuan as of June 30 and total borrowings of 13.8 billion yuan, whereas, the company had generated positive cash flow of 11 billion yuan in the June quarter 2019.