On October 13, HAIDILAO fell 4.17% intraday, trading at HK$9.265 with turnover of HK$30.621 million.
The decline followed the company's announcement on October 12 that it had granted an unsecured loan facility of up to HK$100 million to Chairman, CEO, and controlling shareholder Zhang Yong. The loan, with a term of one month and an interest rate of one-month HIBOR plus 60 basis points, is intended for Zhang's personal financial arrangements, according to the filing.
Market participants expressed concern over the use of corporate internal resources for the controlling shareholder's personal liquidity needs. Notably, this comes just weeks after a family trust associated with Zhang's spouse sold 259 million shares at HK$10.62 each, raising approximately HK$2.75 billion, which had already weighed on investor sentiment. The company stated the loan would not affect daily operations, but the move has nonetheless added to negative sentiment around governance and capital allocation.
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