SFC notes 13 cases so far this year, up from total of 15 last year, in warning that lack of public float can lead to high volatility
2-MIN READ2-MIN ListenZoe SL ChanPublished: 12:00pm, 6 Aug 2026Hong Kong’s securities regulator has put a spotlight on highly concentrated shareholding this year, a move interpreted by market analysts as a warning about sharp price swings on small-cap stocks.
For example, the controlling shareholder and 18 shareholders of Desun Real Estate Investment Services Group, a Sichuan-based property management firm, held a combined 99.53 per cent of total issued shares as of July 21, according to an SFC announcement on Monday.
The firms cited by the SFC are small- and mid-cap stocks, with market values between HK$600 million (US$89 million) and HK$9 billion. The regulator warned that when ownership was concentrated among a few shareholders, even small trades could cause sharp price swings.
Andrew Lam, managing director at audit firm BDO, said market funds and investor attention was heavily focused on A+H listings – firms with both Hong Kong shares, called H shares, as well as A shares listed in mainland China – as well as biotech companies and specialist tech leaders.
“Old-economy small- and mid-caps lack market appeal and suffer from light daily trading, making it easy for limited capital or specific buyers to absorb most floating shares and trigger high concentration,” he said.
