0853.HK
U.S. banking giant JPMorgan purchased about 2.48 million Hong Kong-listed shares of MicroPort Scientific on May 30.

The Latest: U.S. banking giant JPMorgan purchased about 2.48 million Hong Kong-listed shares of MicroPort Scientific Corp. (0853.HK) on May 30, raising its stake in the medical device maker from 12.89% to 13.02%, according to a new Hong Kong Stock Exchange filing.

Looking Up: Such an increase by a major institutional buyer is usually a positive sign, implying the investor is optimistic on the company’s prospects and believes the stock may have some upside.

Take Note: JPMorgan also slightly increased its short position in the company, holding a total short position of approximately 135 million shares, accounting for 7.34% of the company’s issued share capital.

Digging Deeper: Established in 1998, MicroPort Scientific’s business mainly covers cardiovascular interventional products, orthopedic medical devices, diabetic and endocrine medical devices, and neurological interventional products. The company was listed on the Hong Kong Stock Exchange in September 2010, operating at a loss since 2020 and has been expanding over the past four years. As a result of the tight financial situation, it announced in April that it had obtained financing and borrowings totaling approximately $500 million from Hillhouse Capital other financial institutions to repay the convertible bonds that were due to mature soon.

Market Reaction: MicroPort Scientific’s shares rose – and then fell – on Thursday morning, closing down 0.2% at HK$6.33 by the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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