Goldenwise Capital Group, a China-based hedge fund firm founded by Huakun Ding, has set its sights on New York-listed Human Resources firm GEE Group Inc as the first target in a new activist push, according to a report by Bloomberg.
Goldenwise has built a stake of more than 5% in GEE, with shares in the company jumping by some 28% since the the hedge fund revealed its position in a regulatory filing on 15 August.
And Ding says Goldenwise has identified other targets including Hong Kong-traded rice firm Golden Resources Development International Ltd, which he says are undervalued and could generate hefty returns if he can persuade management to make changes.
While activist campaigns are on the increase globally, with the exception of Ping An Insurance (Group) Co’s recent campaign against HSBC Holdings, they remain something of a rarity among Chinese firms.
The report cites data compiled by Bloomberg as showing that there have been 541 campaigns launched so far this year – almost half aimed at US companies – compared with 6633 for the whole of 2022, but there have been no Chinese targets.
In a telephone interview, Ding revealed that his firm is only currently targeting firms with market values of up to $500m, but he may aim higher as financial resources at the firm, which manages about $200m, grow.
