On January 22, it was reported that according to documents disclosed by the Hong Kong Stock Exchange on January 22, Zhang Lieyun increased his OTC holdings at an average price of HK$0.18 per share on January 22$HUABANG TECH (03638.HK)$130 million common shares worth approximately HK$23.4 million. After increasing his holdings, Zhang Lieyun's latest shareholding was 175 million shares, and the good position ratio rose from 4.75% to 18.48%.
This transaction involves another related party: Cheung Lit Wan Kenneth.
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?
As required by the Hong Kong Stock Exchange, major shareholders (individuals and companies holding 5% or more of the shares) are required to disclose their share interests in listed companies. The directors and top executives of a listed company must disclose their interest in shares and debentures of the listed company and the company 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.