On May 24, it was reported that according to documents disclosed by the Hong Kong Stock Exchange on May 24, Cheng Chi-hang increased his OTC holdings at an average price of HK$1.04 per share on May 22$CLARITY MEDICAL (01406.HK)$12.45 million common shares worth approximately HK$12.948 million. After the increase in holdings, the latest number of shares held by Zheng Zhiheng was 63,387,500 shares, and the ratio of good positions rose from 9.64% to 12.00%.
Why did activists increase their holdings, but their shareholding ratio declined?
This may be because listed companies have placed additional shares, leading to a dilution in the shareholding ratio of actors.
What is disclosure of interests?
According to the requirements of the Hong Kong Stock Exchange, major shareholders (individuals and companies holding 5% or more of the shares) are required to disclose their shareholding interests in listed companies. The directors and top executives of a listed company are required to disclose their interests in the shares and debentures of the listed company and companies linked to the listed company.
Why is disclosure of interests important?
Disclosure of interests allows investors to identify (1) persons who control or are capable of controlling the stock interests of listed companies, and (2) persons who may benefit from transactions involving linked entities of listed companies.