Haidilao International Holding has agreed to provide its founder, Zhang Yong, with a one-month loan of up to the Hong Kong dollar equivalent of 100 million yuan (US$14.9 million), a move that has raised market speculation as investors closely watch Beijing’s October 22 deadline for offshore trust taxation.
The Hong Kong-listed hotpot chain said in a stock exchange filing on Monday night that it would fund the loan from internal resources and charge interest at 0.6 percentage points above the one-month Hong Kong interbank offered rate.
The principal amount translates to around HK$117.2 million.
Zhang, the company’s controlling shareholder, chairman and CEO, could use the money only for “personal financial arrangements”, the filing said. The funds could not be used to finance purchases of Haidilao shares, loans or guarantees to third parties, or any purpose that breached listing rules or regulatory requirements, it added.