This week’s losses have exacerbated a selloff in Haidilao, best known for its string of Chinese spicy soup restaurants. The stock is now down 66% from a February peak, a sharp reversal following an almost 250% surge in the last two calendar years.
While Chinese technology and private-education giants have been stealing the headlines this week when it comes to stocks in Hong Kong, the biggest loser in the market is a popular hotpot chain.
Shares of Haidilao International Holding Ltd. have plunged 31% over five days, turning them into this year’s worst performer on the Hang Seng Index. The rout comes as the company issued a first-half profit warning on Sunday, citing higher expenses due to new restaurant openings and negative impact from the pandemic.
