Duan Yongping Reports Lower Pop Mart, Stake Falls to 5.55%

Veteran investor Duan Yongping has reduced his disclosed stake in Pop Mart International for the first time since publicly reporting a major holding in the Chinese toy maker, according to a filing with the Hong Kong Stock Exchange on Wednesday.

As of July 30, H&H International Investment, the investment vehicle managed by Duan, held a 5.55% long position in Pop Mart, down from 7.65% previously. The filing showed the total long position declined by 27.93 million shares.

The reduction marks the first notable decrease in Duan's disclosed interest since he emerged as a major shareholder in the company.

According to the HKEX disclosure, the change resulted from the "delivery of shares or cash pursuant to equity derivatives," indicating that the reduction was likely driven by the settlement of derivative contracts rather than open-market share sales.

The transaction suggests Duan held Pop Mart shares while writing covered call options to collect option premiums. As some of those call options were exercised upon expiration, he delivered part of his shareholding at an effective settlement price of approximately HK$162.50 per share, reducing his physical shareholding by about 8.93 million shares.

At the same time, the expiration or settlement of other derivatives positions reduced his reportable long interest from 7.65% to 5.55%, according to the filing.