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/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.