Haidilao Shares Fall Over 12% After Founder's Spouse Sells HK$2.75 Billion in Stock

Phoenix News — Shares of Haidilao (06862.HK) fell sharply on September 9, dropping more than 12% in early trading to a low of HK$10. By press time, the stock had recovered to HK$10.3, trimming the loss to 9.49%, giving the company a market value of approximately HK$57.4 billion.

According to media reports, a major shareholder sold 259 million shares on September 9, representing about 4.6% of the company's issued shares and 12% of the free float. Trading documents show that shareholder SP NP raised HK$2.75 billion (about US$350.8 million) by selling the shares at HK$10.62 each, a 6.7% discount to the previous day's closing price. UBS acted as sole bookrunner.

Morgan Stanley identified the seller as Shu Ping, spouse of Haidilao founder and chairman Zhang Yong. The bank described the sale as "unexpected" and suggested it could be linked to recently introduced offshore trust tax rules in mainland China, which require residents to declare and settle relevant taxes within 90 days.

The speculation sparked discussion on the Xueqiu investor platform, with some investors suggesting the sale might be related to tax payments. Zhang Yong had purchased 11.35 million Haidilao shares at HK$13.39 in May. Morgan Stanley said the share sale could weigh on market sentiment in the short term but maintained its "overweight" rating, citing solid fundamentals.