{
  "id": 6717185,
  "title": "Haidilao’s stock rout exposes risk from Beijing’s taxation crackdown as payment day looms",
  "url": "https://urgent.news/2026/09/11/haidilaos-stock-rout-exposes-risk-from-beijings-taxation-crackdown-as",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T06:00:13.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3367159/haidilaos-stock-rout-exposes-risk-beijings-taxation-crackdown-payment-day-looms"
  },
  "original_language": "en",
  "account": "Stock turmoil at Chinese hotpot chain Haidilao could provide a cautionary tale for investors about potential risks from Beijing's new taxation policies on high-net-worth individuals' overseas assets. A plan by co-founder Shu Ping, wife of Haidilao chairman Zhang Yong, to offload 259 million shares, or 4.65% of the company, sent Haidilao's stock tumbling by 10% in Hong Kong this week. While the sale, intended to address personal funding requirements, is valued at around HK$2.75 billion ($351 million), market participants quickly attributed it to the looming implementation of a new income tax on offshore trusts. Under the new tax regime, owners of trusts, typically established in jurisdictions like Hong Kong, Singapore, or the Cayman Islands, must file declarations and remit taxes before a 90-day grace period ends in October. The fallout from this tax change may extend beyond Haidilao, as other Chinese companies with significant holdings in offshore trusts are also facing scrutiny. Guming Holdings, a fruit-tea producer that debuted on the Hong Kong Stock Exchange in February, and Nasdaq-listed hotel operator Atour Group, both have substantial stakes held by founders via offshore trusts, according to their respective prospectuses. The collective value of offshore trusts representing sizable shareholdings of Chinese-listed companies in Hong Kong is estimated at $28.5 billion by the China Business Journal. Haidilao's stock has recovered slightly, up 1.7% to HK$10.08 as of Friday afternoon, while Guming fell 0.3% to HK$23, extending an 8% drop for the week. Atour declined 0.9% to US$32.85 in U.S. trading on Thursday, extending its weekly decline to 4.4%. The selling pressure in Haidilao is not expected to spread to its affiliate Yihai International Holdings, given its less concentrated shareholding and smaller market capitalization, according to Daiwa Securities Group. Analyst Carol Xia of the Japanese brokerage firm suggests the share sell-off is a one-off event and believes the overhang has been cleared. However, she warns that negative sentiment related to similar issues may persist in the near term for broader China consumption and consumer companies. Zhang and Shu control 45% of Haidilao through two separate offshore trusts. Guming's founder Wang Yunan placed most of his 39.6% stake in the company into an offshore family trust, while Atour disclosed that founder Wang Haijun owned 74 million shares in an overseas trust. While it remains uncertain whether similar structured companies will follow Haidilao's lead in reducing stakes to finance tax liabilities, this development further clouds optimism in a market already grappling with potential interest rate hikes by the U.S. Federal Reserve next week and volatile oil prices above $100 per barrel. China has been tightening its oversight of high-net-worth individuals' overseas assets to close a tax loophole and curb capital flight. In addition to taxing offshore trusts, Beijing has also imposed taxes on overseas insurance policies and suspended stock trading through non-compliant accounts opened outside the Chinese mainland.",
  "summary": "The turmoil surrounding Chinese hotpot chain restaurant operator Haidilao International Holding could serve as a warning to investors of the risks stemming from Beijing’s new taxation regime on overseas assets held by wealthy individuals. A plan by Shu Ping, the co-founder and wife of Haidilao chairman Zhang Yong, to sell 259 million shares – a 4.65 per cent stake – sent the stock plunging 10 per…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}