Duan Yongping's reduction of holdings in Pop Mart is not an active sell-off; this reduction is a passive exercise of subscription options

Earlier today, the Hong Kong Stock Exchange disclosed that the long position ratio of H\&H International Investment, managed by Duan Yongping, in Pop Mart International Group Limited decreased from 7.65% to 5.55% as of July 30, 2026.

According to the detailed interpretation of the announcement, this reduction was caused by the exercise of sold call options. Duan Yongping holds the underlying shares of Pop Mart through H\&H International Investment while selling call options to earn premiums. After some calls expired and were exercised on July 30, Duan Yongping had to deliver shares at the agreed price, resulting in a decrease in physical holdings, and the disclosed long position ratio fell from 7.65% to 5.55%.

This time, Duan Yongping had some calls expire and be exercised, delivering part of the shares at an average settlement price of approximately HKD 162.50, resulting in a net decrease of about 8.9328 million shares in physical holdings. Additionally, the expiration or conversion of other option positions contributed to the overall decline in the disclosed total long position ratio.

Duan Yongping is accustomed to using sold options to enhance returns or build positions, and he has previously engaged in similar operations with stocks like Apple. On July 23, Duan Yongping had just responded to investors on Xueqiu, stating, "Pop Mart has just started buying, and it is highly likely that I won't sell within the next 10 years." The decrease in ratio this time is mainly due to passive reduction caused by option settlements, rather than actively selling in the market. The actual decrease in physical holdings is also not as exaggerated as the disclosed ratio suggests, as the disclosed long position ratio also includes the impact of related derivative positions.