Shares of HAIDILAO (06862) plunged over 10% in morning trading, pressuring sentiment in the Hong Kong market.

At the time of writing, the stock had fallen 9.14% to HK$10.34, with turnover reaching HK$2.98 billion. The sharp sell-off followed the appearance of multiple large block trades before the market open, involving approximately 259 million shares at an average price of HK$10.62 per share, totaling roughly HK$2.75 billion.

Market speculation suggests these transactions may be linked to a potential disposal of shares by major shareholders. Morgan Stanley noted that such a move by HAIDILAO's largest shareholder could weigh on market sentiment in the near term, until investors regain confidence in the company's earnings outlook and receive assurance that no further divestitures will follow.