Haidilao Billionaire’s $350 Million Surprise Sale Sinks Shares

The co-founder of China's largest hotpot restaurant chain, Haidilao, is selling shares worth up to US$353 million in a surprising move that has sent the company's stock tumbling by as much as 12%, its lowest level since March 2022. Shu Ping, wife of Haidilao's Chairman and CEO Zhang Yong, is offloading 259 million shares through a family trust, representing a 6% discount to the previous closing price.

The sale comes just weeks after China announced it would start taxing offshore trusts set up by its citizens, a loophole that wealthy families often used for asset protection and succession planning. The move has sent shockwaves through major wealth management hubs like Hong Kong and Singapore, where offshore trusts have been popular among Chinese entrepreneurs and ultra-high-net-worth individuals.

Morgan Stanley analysts noted the unexpected nature of the sale, highlighting that Zhang Yong had acquired additional shares in May. The share sale represents approximately 4.6% of the company's outstanding shares and 12.2% of its free float, accounting for about 9% of the combined holdings of the selling shareholders. Shu Ping's net worth is estimated at US$3.2 billion, according to the Bloomberg Billionaires Index.