Country Garden Services Holdings Co.’s shares plunged in Hong Kong on Monday morning, after the Chinese property company’s chairman agreed to sell HK$5.055 billion (US$649.3 million) of shares.
The selloff came after Country Garden Services, one of China’s largest real estate management services providers, said over the weekend that Yang Huiyan, its chairwoman and controlling shareholder, agreed to sell 237 million shares at HK$21.33 apiece.
The stock lost as much as 18% and was last down 11% at HK$21.20.
The shares represent an about a 7.03% stake in the company, and Ms. Yang will remain a controlling shareholder with a 36.12% stake after the sale is completed.
The share disposal comes at a time when the company’s shares have enjoyed a strong rebound after China stepped up its rescue plan for the country’s embattled real-estate sector while officials’ looser pandemic curbs further boosted demand optimism. Before Monday’s drop, Country Garden Services’ shares had more than tripled since late October.