Hong Kong's securities regulator advised investors and shareholders to "exercise extreme caution" when dealing with the shares of GR Life Style (HKG:0108), as the high concentration of shareholding in the company to a small number of stockholders could result in volatile share prices.

The watchdog said that following an investigation, its findings suggested that 10 shareholders held 547.9 million shares in the real estate firm, representing 17.02% of its total issued shares as of Dec. 9.

Additionally, 430 million, or 13.36%, shares were also held by holders who received shares from Gang Rui International Investment (HK) through off-exchange transactions.

These shares, together with over 1.95 billion, or 60.66% shares held by executive directors Wei Chunxian and Sun Zhongmin, cornered 91.04% of GR Life Style, the regulator said, whose report was disclosed by the company itself late Monday.

As a result, other shareholders only held 288.6 million shares, or an 8.96% stake in the company, the regulator said.