Masterstroke? David Duan Reduces Stake in Pop Mart Right After Declaring 'Won't Sell for 10 Years' — The Truth Differs From Market Perception

Prominent investor David Duan has seen his stake in Pop Mart (09992-HK) decline for the first time since going public with his position. According to the latest Hong Kong Stock Exchange disclosures, as of July 30, 2026, his investment vehicle H&H International Investment reduced its ownership from 7.65% to 5.55%, decreasing its shareholding by 27.933 million shares to approximately 73.9 million shares. Despite the significant reduction, the stake remains above 5%, making Duan still a key shareholder in Pop Mart.

Looking back, Duan has consistently shown an aggressive accumulation stance toward Pop Mart. In May of this year, his stake first surpassed 5%, triggering mandatory disclosure requirements under HKEX rules. Since then, he has repeatedly added to his position through this investment entity.

Just on July 6, the HKEX disclosed that his holdings had increased from 91.2728 million shares to about 102 million shares, raising his ownership from 6.85% to 7.65%. Yet, just as the market was watching for further accumulation, the latest filing shows a decline in his stake.

Notably, just two weeks before this ownership change, Duan publicly reaffirmed his strong long-term conviction in Pop Mart.

On July 23, when asked by a social media user whether he would reduce his Pop Mart stake to shift into other assets, Duan responded: 'I've only just started buying Pop Mart! I guess I probably won't sell within the next 10 years.'

Earlier in early July, he also elaborated on his investment philosophy, stating that Pop Mart, then valued at around HK$200 billion, had already delivered RMB 13 billion in profit last year. He emphasized that its business model has been proven successful and its corporate culture is excellent. He expects the average annual profit over the next 10 to 20 years to likely remain no lower than current estimates, indicating he does not focus on short-term gains.

Regarding the reason behind this reduction, the HKEX disclosure states it was due to 'delivery of shares or payments required under equity derivatives,' part of normal contractual settlement arrangements related to derivative instruments.

This technical explanation suggests the move was likely not an active sell-off in the secondary market, meaning it does not necessarily contradict Duan’s previously expressed long-term bullish stance.