Beijing-based Laopu Gold – known for its handmade jewellery – has won approval from the Hong Kong stock exchange to convert 40.39 million unlisted shares held by three shareholders into H shares, accounting for nearly 24 per cent of the total shares issued.
Beijing Hongqiao Jinji Consulting’s 28.21 million shares or 16.76 per cent, together with Chen Guodong’s 7.54 million shares or 4.48 per cent stake and Tianjin Jincheng Enterprise Management Consulting’s 4.64 million or 2.76 per cent interest were approved for conversion, the company said in a statement late on Tuesday.
Full circulation allows major shareholders of all Hong Kong-listed mainland companies to convert their unlisted stock into ordinary tradeable shares.
The approval came as Laopu’s stock has outshone gold since listing last year, even with bullion prices soaring to record highs.
On Wednesday, Laopu’s shares fell 8 per cent, trimming some of the 19 per cent gains made a day earlier when they hit a record HK$868.00. The stock has risen more than 2,000 per cent from its initial public offering price of HK$40.50 in June 2024. Meanwhile, gold prices have gained nearly 35 per cent over the same period, hitting new peaks along the way.
