Haidilao’s stock rout exposes funding risk from Beijing’s taxation crackdown as payments loom

The turmoil surrounding Chinese hotpot chain restaurant operator Haidilao International Holding could serve as a warning to investors of the funding risks stemming from Beijing’s new taxation regime on overseas assets held by wealthy individuals.

A plan by Shu Ping, the co-founder and wife of Haidilao chairman Zhang Yong, to sell 259 million shares – a 4.65 per cent stake – sent the stock plunging 10 per cent in Hong Kong this week.

While Haidilao said the stake reduction, which stands to...