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Haidilao hits record low after granting loan to controlling shareholder

By Reuters News4 hours ago Updated

** Shares of Haidilao International 6862.HK fall 6.9% to HK$8.925, their record low since debut in September 2018

** Stock set for biggest one-day pct decline since September 9, snapping three straight gaining sessions

** Chinese hot pot restaurant chain operator says it has agreed to grant its chairman and controlling shareholder Zhang Yong a loan facility of 100 million yuan ($14.94 million) for a term of one month at an interest rate of one-month HIBOR plus 60 basis points

** Says the loan is unsecurred and shall be used solely for Zhang's personal financial arrangements

** Citi trims target price to HK$15.5 from HK$19.3, expecting negative sentiment in the short term, given renewed market concerns on Haidilao controlling shareholder's funding needs

** YTD, stock down 36.9%, benchmark Hang Seng Index .HSI down 6.1%

($1 = 6.6953 Chinese yuan renminbi)

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