Odaily Planet Daily reports: The Hong Kong Exchange disclosed an equity change notice: Duan Yongping’s long position in POP MART through H&H International Investment decreased from 7.65% to 5.55% on July 30, a reduction of 2.1 percentage points. The subtlety lies in the timing—on July 23, Duan Yongping had just responded to investors on Xueqiu: “I’ve just started buying POP MART! I doubt I’ll sell it within the next 10 years.” Yet, just one week later, his stake declined by more than 2 percentage points.
A representative from Pop Mart told reporters that the reduction in ownership stake was not due to direct selling on the secondary market, but rather the fulfillment of an options contract, with shares delivered as stipulated in the transaction agreement. A capital markets analyst further explained that Duan Yongping’s recent change in holdings is closely related to the price range he set when previously selling puts and calls: “The price range was relatively narrow, indicating a short-term trading activity rather than an intentional reduction in holdings as commonly understood.”
This refers to Duan Yongping’s signature “option rental” strategy—holding the underlying stock while selling options to collect premiums, and passively delivering or receiving shares when the stock price reaches the strike price. Looking at Pop Mart’s recent price movement: on July 16, it surged over 6% on high volume; on July 30 (the day of the disclosure), the intraday price briefly spiked to HK$172.4, after which it oscillated and declined. On August 5, it closed at HK$161.4, down more than 50% from its historical high of HK$337.08, with a total market cap of approximately HK$214.9 billion and a trailing P/E ratio of 15.2x, reflecting relatively muted market sentiment. (Everyday Financial News)