Duan Yongping: Reduced Holdings in Pop Mart Due to Expiration of Options
Duan Yongping responded on Xueqiu regarding his reduction in holdings of Pop Mart, stating that it was mainly due to the significant impact of the expired put options on his shareholding ratio. Additionally, some stocks were sold with call options at the time of purchase, which were exercised by the counterparties.
The Hong Kong Stock Exchange disclosed that H&H International Investment, which it manages, reduced its long position from 7.65% to 5.55% on July 30. After some calls expired and were exercised, stocks were delivered at an average settlement price of approximately HKD 162.50, resulting in a net decrease of about 8.9328 million shares. He indicated that this operation may continue within a certain price range in the future and reiterated that "Pop Mart Insurance Company has opened."
The event-driven market has reinterpreted the major shareholder's changes in holdings as an options strategy rather than active selling, with capital flowing towards long positions combined with selling options to enhance returns, alleviating short-term selling pressure expectations for Pop Mart and benefiting option sellers.
Source: Public Information
ABAB AI Insight
Duan Yongping has long adopted a strategy of selling put options to build positions and selling call options to enhance returns, having previously done similar operations on stocks like Apple. He has publicly stated that "Pop Mart Insurance Company has opened," implying that by collecting premiums, he plays an insurance role, acquiring stocks at a lower cost when prices fall.
In terms of capital strategy, buying the underlying stock while simultaneously selling calls locks in upside returns, and selling puts allows for proactive acquisition during downturns. The motivation is to lower holding costs with premiums and maintain long-term exposure; resources shift from pure stock positions to a combination of derivatives, making the disclosed fluctuations in holdings reflect contract expirations rather than changes in belief.
Similar cases can be seen in Buffett-style long positions combined with options enhancement, as well as domestic investors using warrants or over-the-counter options for rolling operations in Hong Kong stocks. Currently, Duan Yongping is in the early stages of building positions and combining range operations for Pop Mart.
Essentially, this represents capital concentration: converting short-term price fluctuations into premium income through options, with the mechanism being to continuously collect rent within a preset price range, allowing long-term capital to achieve higher capital efficiency without actively reducing positions.
ABAB News · Law of Cognition
- Option expiration does not equal a change in belief.
- Insurance company model: collecting rent is more stable than buying and selling.
- Range operations make long positions more profitable.