Hong Kong's securities regulator advised investors and shareholders to "exercise extreme caution" when dealing with the shares of Home Control International (HKG:1747), as the high concentration of shareholding in the company to a small number of stockholders could result in volatile share prices.

The watchdog said its investigation found 20 shareholders held a little over 88.9 million shares in the home control service provider, representing 17.55% of its total issued shares as of Oct. 17.

Coupled with the 74.06% stake owned by a substantial shareholder, they cornered 91.61% of Home Control International, the regulator said, whose report was disclosed by the company itself late Tuesday.

As a result, other shareholders only held 42.5 million shares, or an 8.39% stake in the company, the regulator said.