What is driving Haidilao shares to a four-year low?

Haidilao shares dropped 3.1% on Thursday to a four-year low following a large block trade by major shareholder SP NP Ltd.

On September 9, SP sold about 259 million Haidilao shares, or roughly 4.65% of issued stock, at HK$10.62 each—a discount of approximately 6.7% to the prior close—raising around HK$2.75 billion. The disposal's overhang weighed heavily on investor sentiment toward Haidilao.

Analysts have also turned more cautious. Morgan Stanley, reiterating its Buy rating, called the sale unexpected. It noted that CEO and Chairman Zhang Yong had been buying shares as recently as May 2026, and warned that sentiment would stay pressured until investors are convinced earnings growth will accelerate and no more share reductions are coming.

The wider Hong Kong market provided no support. The Hang Seng Index fell 1.2% as intensifying Middle East tensions drove Brent crude above US$100 a barrel and US 10-year Treasury yields reached their highest since late 2023. The risk-off mood has pressured consumer discretionary stocks broadly, with the index now down for a fourth straight session.

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