Yao Jinbo, Chairman of 58 Group, has come under scrutiny for regulatory breaches involving the sale of shares in ONEWO (HKEX: 02602). The transactions, which took place over two months, saw the complete liquidation of his stake, generating proceeds exceeding HK$209 million. Yao has since claimed he was unaware of the sales, attributing them to an unintentional error by an external investment management team.

According to the audited interim report of ONEWO for 2026, released on September 16, entities controlled by Yao—who is also the founder, chairman, and CEO of 58.com—conducted multiple reductions of their holdings in June and July. The first tranche involved the sale of 6.74 million shares between June 10 and June 29, at prices ranging from HK$16.03 to HK$20.70 per share. A second wave of selling occurred from July 20 to July 30, with 5.11 million shares sold at prices between approximately HK$16.62 and HK$18.12 per share.

The report confirms that following these disposals, Yao is no longer considered to hold any beneficial interest in the H-shares of ONEWO. In total, the two rounds of selling brought in over HK$209 million, equivalent to roughly RMB 178 million. However, as a non-executive director of ONEWO, Yao was obligated to notify the company before any reduction in his shareholding.

Given that ONEWO scheduled a board meeting for August 13 to review its interim results, a trading blackout period for directors and their controlled entities commenced on July 14. During this window, which spans the 30 days prior to the publication of semi-annual results, trading in company shares is prohibited. Furthermore, regulations require directors to provide prior written notice to the company and obtain a dated confirmation before trading in its securities.

Consequently, ONEWO has classified the two sets of transactions as separate violations in its financial report. Yao has communicated to the board that the breaches were an inadvertent mistake by the team responsible for managing his external investments, rather than a deliberate act on his part. He asserted that he neither participated in nor was aware of the team's plan to sell, and that he did not possess any inside information about the company at the time of the trades.

Yao's investment in ONEWO dates back to 2017, when the company, formerly known as Vanke Service, brought in external shareholders. Through 58 Group, Yao invested approximately RMB 300 million as a strategic investor to acquire a 5% stake. In March 2022, he was appointed as a non-executive director. Prior to ONEWO's listing, in late December 2021, Yao sold a 2.14% stake for about RMB 1.991 billion, reducing his holding to 2.86%, which was further diluted to 2.55% post-IPO. An additional reduction in April 2024 brought his stake down to 1%.

With the June and July sales, Yao's interest in ONEWO has now dwindled to zero. Over the nine-year investment period, his total cash proceeds exceed RMB 2.1 billion. Notably, the recent liquidation occurred at near bottom-of-the-cycle prices, with the average sale price in June falling between HK$16 and HK$20, and slipping to HK$16 to HK$18 in July. Just one month after the complete exit, the share price of ONEWO rebounded to above HK$19. As of September 15, the stock closed at HK$19.26, giving the company a market capitalization of HK$22.5 billion. With the fundamentals remaining stable, Yao's decision to offload his entire position at such low prices may reflect financial pressures within 58 Group itself.