It was reported on July 31 that according to documents disclosed by the Hong Kong Stock Exchange on July 31, Greater Elite Holdings Limited increased its OTC holdings at an average price of HK$0.082 per share on June 16$SK TARGET (08427.HK)$12.3876 million common shares with a value of approximately HK$1,015,800. After the increase in holdings, the latest number of shares held by Greater Elite Holdings Limited was 23.5101 million shares, and the ratio of good positions increased from 8.98% to 17.25%.
The transaction involves other related parties: Zheng Lihua and Luo Fengyuan.
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.