Key Takeaways:
"China's Warren Buffett" Duan Yongping increased his long position in Pop Mart International Group Ltd. by 4.66 million shares on May 28 at an average price of HKD 162.5 apiece, spending about HKD 757 million, according to a Hong Kong stock exchange filing.
The purchase raised his stake in the toy maker from 5.69% to 6.04%, making him the company's second-largest shareholder with a holding valued at more than HKD 12 billion based on current prices.
On the same day, Duan also increased his short position in Pop Mart by 8.73 million shares, pushing the short position ratio from 0.63% to 1.28%. The filing attributed the short position increase to becoming a holder of equity derivatives that give rights or obligations to deliver the relevant shares.
The dual move — adding to both long and short positions simultaneously — suggests a hedging or derivatives-based strategy rather than a straightforward directional bet. Duan, who previously said he "did not understand" Pop Mart's business, has rapidly accumulated shares this year. He first crossed the 5% disclosure threshold on May 25 after purchasing 9.82 million shares at about HKD 150 each, spending roughly HKD 1.47 billion.
Pop Mart shares rose 6.5% on May 29 to close at HKD 164.2, extending gains after Duan's initial stake disclosure. The stock has more than doubled over the past 12 months as the company expands overseas, with revenue from international markets growing at triple-digit rates.
The latest filing comes less than a week after Duan became a substantial shareholder. His increased allocation to Pop Mart, funded partly by trimming holdings in traditional energy stocks, signals conviction in founder Wang Ning's strategy of building a global collectible toy franchise. Investors will watch for further disclosure filings to gauge whether Duan continues to accumulate or begins to unwind the paired positions.
This article is for informational purposes only and does not constitute investment advice.
