Duan Yongping's stake in Popping Mart Holdings declines due to exercise of call options

Huo Xing Cai Jing reports that on August 5, earlier today, the Hong Kong Stock Exchange disclosed that H&H International Investment, managed by Duan Yongping, reduced its long position in Pop Mart International Group Limited from 7.65% to 5.55% as of July 30, 2026. According to the detailed explanation in the HKEX announcement, this reduction resulted from the exercise of sold call options. Duan Yongping holds the underlying shares of Pop Mart through H&H International Investment while selling call options to collect premiums. On July 30, as some of these calls expired and were exercised, Duan was obligated to deliver shares at the agreed price, leading to a reduction in his physical shareholding—the disclosed long position fell from 7.65% to 5.55%. The exercise of these calls occurred at an approximate average settlement price of HK$162.50, resulting in a net reduction of about 8.9328 million physical shares. This was compounded by the expiration or conversion of other option positions, collectively causing the reported decline in total long exposure. Duan Yongping routinely employs option-selling strategies to enhance returns or accumulate positions, having previously executed similar trades on stocks such as Apple. He has publicly stated, “I’ve just started buying Pop Mart; I likely won’t sell within the next ten years.” This reduction in ownership percentage is primarily due to passive delivery triggered by option exercises, not active selling in the market. The actual decrease in physical holdings is less significant than the disclosed percentage suggests, as the reported long position includes the impact of derivative positions.