POP MART's stock plunged 5.14% intraday on Thursday, leading losses in the Hong Kong market. The sharp decline was triggered by a disclosure showing that major shareholder Duan Yongping's holding in the company had been significantly reduced due to the settlement of equity derivatives.
According to Hong Kong Stock Exchange filings, H&H International Investment, managed by Duan Yongping, saw its long position in POP MART fall from 7.65% to 5.55% as of July 30. The transaction involved approximately 27.93 million shares at a consolidated delivery price of HKD 162.50. Duan later clarified that the reduction was not a direct secondary market sale but rather a physical delivery obligation under existing put option contracts that expired, with shares being "called away."
The move drew immediate market scrutiny because Duan had publicly stated just weeks earlier that he would likely not sell POP MART within 10 years. POP MART also confirmed that the stake reduction was a settlement of derivative contracts, not an active sale. Despite the clarifications, the sudden 2.1 percentage point drop in Duan's holding sparked investor concern, driving the stock lower.
Comments