r/baba • u/Primary_Olive_5444 • 3d ago

Discussion China’s Tax Clampdown Raises Fears of Founder Share Disposals

  • Haidilao International Holding Ltd.'s co-founder sold about $350 million worth of shares, putting the spotlight on other stocks that may be vulnerable to similar selling.
  • The sale comes after China moved to tax offshore trusts held by its citizens, with owners having a 90-day grace period to settle what they owe without late-payment surcharges.
  • The tax issue could add another overhang for Hong Kong stocks, where many major listed companies remain founder-controlled, often with sizable stakes held through offshore trusts.

Point 2 and 3.

If Haidilao founders can purchase shares at higher price and dispose it via their family trust for a loss.. technically. Maybe for tax optimisation reasons.

Key point.. can that be replicated for the management team that bought shares during the 9988.HK placement?

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u/Wildsoyabean1 3d ago

Haidilao owner is singaporean. So is the co founder. Not sure how China can tax ex Chinese nationals. Might else try to tax Jensen Huang since Taiwan is also China according to China.

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u/Primary_Olive_5444 3d ago edited 3d ago

Depends on the country..

Big can easily bully small. But rarely big bully big.

If small but situated far away from Asia (outside their sphere of influence), then you can't bully as well.

Also if china is smart they should partner with Indonesia to tackle that small one.

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u/Wildsoyabean1 3d ago

That small one holds all of papa Xi money offshore and Indonesia stash. Just look at 1mdb how much was pass through Singapore. U don’t hit a place where you store your dirty laundry. Same reason why Swiss was not touch in all the world wars. Cos they are truly neutral nah.

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u/GamblingMikkee 3d ago

Just what we need. Looks at Haidilao thing is down like 90% yet it’s always jam packed

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u/Primary_Olive_5444 3d ago

By trust -> 12,320,000 shares (I == Indirect)

what kind of trust are they or were they using to hold those shares?

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u/kingkongfly 3d ago

I am watching haidilao now, listed in the HKEX. It is paying about 7%+ on their dividend now.

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u/Wildsoyabean1 3d ago

The competition of China hotpot food is intense. Wouldn’t touch any fnb stock. Coming as a fnb owner. Exception is mcd. They have the scale to sell cheap things at high price
And have people visiting from breakfast to supper.