HK Stock Market Move | BLOKS (00325) Falls Over 6% Again, Down 26% Since Controlling Shareholder's Stake Reduction; Citi Says Near-Term Investor Sentiment Under Pressure

BLOKS (00325) Falls Over 6% Again, Down More Than 26% Cumulatively Since October 22. As of Press Time, It Is Down 6.38% at HK$51.4, with a Turnover of HK$21.8339 Million. On the news front, BLOKS announced on October 22 that controlling shareholder, chairman of the board, executive director and chief executive officer Zhu Weisong sold 3.849 million company shares, equivalent to approximately 1.56% of the company's equity, involving approximately HK$251 million. The sale was due to the shareholder's own funding needs and financial arrangements and is a private matter at the shareholder level. Citi noted that after the reduction, Zhu Weisong's stake fell from 53.59% to 52.03%, and it expects investor sentiment to be negatively affected in the near term, as the market focuses on the controlling shareholder's funding needs and draws parallels to the HAIDILAO situation. It currently maintains a "Buy" rating on BLOKS and a target price of HK$82.