Anta Sports Products Ltd. sank by the most in almost four months Wednesday after the entry of a sizable stake in Hong Kong’s clearing system stoked speculation of a sale by a key shareholder.
(Bloomberg) — Anta Sports Products Ltd. sank by the most in almost four months Wednesday after the entry of a sizable stake in Hong Kong’s clearing system stoked speculation of a sale by a key shareholder.
Shares of the Chinese sportswear maker slumped as much as 8% in Hong Kong, the most since Oct. 24. The move came after exchange data as of Tuesday showed a 3.11% stake, or 84.5 million shares, entered the Central Clearing and Settlement System.
The entry is reviving memories of an episode last July where a stake matching the size of Berkshire Hathaway Inc.’s position in BYD Co. appeared in the system, before the investment firm eventually confirmed the sale. Speculation is swirling around Anta’s shareholding even though there may be other reasons to explain the entry.
“The market may be speculating on the CCASS movement given the size of the stake is big, around $1.2 billion,’ said Willer Chen, senior research analyst at Forsyth Barr Asia Ltd. “This leads to a drop in share prices in the early session.”
UBS Securities Hong Kong Ltd. held 7.75% of Anta’s total issued shares, warrants and units as of Feb. 14, an increase from 4.66% as of Feb. 11, exchange data showed. Anta International Group Holdings Ltd. is Anta’s largest shareholder with a 44.26% stake, according to data compiled by Bloomberg.
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