Xiaomi Founder’s $13 Million Share Purchase Sparks Stock Rebound

Xiaomi Corp. founder Lei Jun’s purchase of about HK$100 million ($12.9 million) worth of company stock may help bolster sentiment in the smartphone maker after shares tumbled more than 30% from the July peak.

The announcement, disclosed late Monday, lifted Lei’s stake to 23.26%, and sent shares rallying 4.4%, the biggest one-day jump in two months. Analysts say the move, which is unusual as it involves the founder instead of just the company, underscores efforts to stabilize the stock and limit downside going forward.