Haidilao Stock Hits Four-Year Low After Major Shareholder Sells HK$2.75 Billion Stake

Shares of Haidilao International Holding Ltd. (HK:6862) fell 3.1% to a four-year low on Thursday, pressured by a large block trade from a major shareholder and a challenging macroeconomic environment.

Major Shareholder Executes Discounted Sale

The immediate catalyst for the stock's decline was a significant share disposal by SP NP Ltd. The transaction, which took place on September 9, involved the sale of a substantial block of Haidilao shares.

Key details of the sale include:

• Shares Sold: Approximately 259 million shares, representing about 4.65% of the company's total issued shares.
• Sale Price: HK$10.62 per share, a discount of roughly 6.7% to the previous day's closing price.
• Total Proceeds: The sale raised approximately HK$2.75 billion.

The overhang from this large, discounted sale has weighed heavily on investor sentiment toward the restaurant operator.

Analyst View and Market Outlook

Ad

According to a note from Morgan Stanley, the sale was unexpected, particularly since Haidilao's Chairman and CEO, Zhang Yong, had been purchasing shares as recently as May 2026. The investment bank, which maintained its "Buy" rating, warned that sentiment on the stock would likely remain under pressure.

Morgan Stanley stated that investor confidence may not recover until there is clear evidence of accelerating earnings growth and assurance that no further large share reductions are planned.

Broader Market Headwinds

Haidilao's stock performance also reflects a wider risk-off mood in the Hong Kong market. The benchmark Hang Seng Index slid 1.2% on Thursday, marking its fourth consecutive session of declines.

Broader market sentiment has been dampened by escalating tensions in the Middle East, which have pushed Brent crude oil prices above US$100 per barrel. Additionally, U.S. 10-year Treasury yields have climbed to their highest levels since late 2023, creating headwinds for consumer discretionary stocks across the board.