Duan Yongping raises POP MART stake to 7.7% as put options expire

Duan Yongping's H&H International Investment raised its POP MART stake to 7.7 percent from 5.55 percent, buying 28.646 million shares at up to HKD160 each.

"It's just that the put options expired, and some shares were called away," Duan said on Xueqiu, the Chinese social media platform, responding to investor questions about the position change.

The Hong Kong Stock Exchange disclosure shows H&H International Investment acquired the additional shares on Aug. 6 through equity derivatives, becoming the holder of, or having the right to take, underlying shares. The purchase follows a reduction disclosed on Aug. 5, when the fund's long position in POP MART fell from 7.65 percent to 5.55 percent on July 30.

POP MART shares traded at HKD152.6 on Aug. 13, up 1.06 percent, with 3.6837 million shares changing hands and turnover of HKD564 million. Short selling accounted for HKD537.22 million, or 29.429 percent of total volume.

The stake increase from one of China's most closely watched value investors reflects conviction in POP MART's growth trajectory. Duan, who built his reputation through early investments in companies including Apple and Tencent, has been a notable holder of the toy maker's shares. His commentary on Xueqiu, where he regularly discusses investment philosophy and positions, has become a reference point for Chinese retail investors tracking Hong Kong-listed consumer stocks.

The H&H International Investment vehicle has been actively managing its POP MART exposure, with the July 30 reduction to 5.55 percent followed by the Aug. 6 increase to 7.7 percent. The use of equity derivatives to build the position suggests a structured approach to accumulation rather than a simple market purchase. The fund's net position change over the period — from 7.65 percent to 7.7 percent — shows the overall exposure has remained broadly stable despite the interim reduction, with the put option expiry driving the mechanics of the share transfer.

POP MART, known for its designer toy collectibles and blind boxes, has been a standout performer among Hong Kong-listed consumer names. The company's expansion into new product categories and overseas markets has broadened its revenue base beyond its core business. The stock's sustained trading above HKD150 reflects continued investor interest in the consumer discretionary sector as the company executes on its international growth strategy.

Investors will watch whether Duan continues to accumulate shares and how the derivative positions unwind in coming weeks. The next HKEX disclosure threshold would be triggered at 8 percent ownership, providing another data point on the investor's conviction level. Any further accumulation would reinforce the bullish case for POP MART among value-oriented investors tracking the legendary investor's moves.

This article is for informational purposes only and does not constitute investment advice.