On Thursday, the former chairman of the clothing retailer Esprit hit stake in the company, pushing its shares 22 percent higher amid a speculation he plans to assist revitalise the group. The stock finished at HK$12.9 on the Hong Kong stock exchange after Michael Ying reached his stake to 5.99 percent from 4.79 percent in a $35 million vote of a confidence in the ailing brand's future.
The company said that if Ying exercises all his options, the stake in the company could more than double to 10.33 percent, it making its on the second biggest shareholder.
On Thursday, Hong Kong's benchmark Hang Seng index was down 1.55 percent.
In the last month, Esprit said that it would climb up to $677 million in a new stake sale to assist fund the multi-billion-dollar, a four-year restructuring drive.
It founded in San Francisco in 1968 and headquartered in Hong Kong now, Esprit had been bleeding customers to rivals such as : H&M and Zara that have made aggressive inroads into the Asian market. It has released plans exit the underperforming European markets like Spain, Denmark and Sweden to focus on the Asia, especially China, after it looked a 98-percent declined in the net profit last year.