The founding family of China's largest and most popular hotpot restaurant chain, HAIDILAO, is attempting to sell up to $353 million worth of shares, triggering a sharp decline in the company's stock price. The shares plummeted by as much as 12%, marking the lowest level for the company since March 2022.

According to reports, Shu Ping, the wife of Zhang Yong—the co-founder, chairman, and chief executive officer of HAIDILAO—is selling 259 million shares through a family trust. The offering price represents a discount of approximately 6% or more from the previous day's closing price. The company has not disclosed the specific reasons behind the share sale.

This move by the founding family comes on the heels of China's announcement in July that it would begin levying taxes on offshore trusts established by its citizens. This new policy effectively closes a long-standing tax loophole that wealthy families had relied upon for asset protection and inheritance planning.

The development has sent ripples through wealth management hubs in Hong Kong, Singapore, and other major financial centers, where offshore trusts have long been a favored investment vehicle among Chinese entrepreneurs and ultra-high-net-worth individuals. Market observers and the public alike are eagerly watching to see which of these wealthy mainland entrepreneurs will be first to face the tax and how much they will owe, as the outcome is expected to set a precedent for others.