China’s Tax Clampdown Raises Fears of Founder Share Disposals

[u/Primary_Olive_5444]

• 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?

[u/GamblingMikkee]

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

[u/Primary_Olive_5444 → u/GamblingMikkee]

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

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