By Clarence Leong


Shares of Shanghai Fosun Pharmaceutical (Group) Co. fell sharply Monday morning in Hong Kong, after its controlling shareholder disclosed plans to reduce its stake.

Fosun Pharma's H-shares slid 13% to 21.90 Hong Kong dollars (US$2.79), heading toward their worst one-day percentage decline in 11 months. The stock has lost 36% so far this year.

Its Shanghai-listed shares retreated 9.1% to 36.55 yuan (US$5.30).

Fosun Pharma said in a filing to the Shanghai stock exchange late Friday that its controlling shareholder, Shanghai Fosun High Technology (Group) Co., plans to sell up to 3% of company's total share capital by way of centralized price bidding or block trade of A-shares. The reason for the sale was Fosun High Tech's own operational needs, according to the filing.

Fosun High Tech, wholly owned by Fosun International Ltd., had a stake of about 37.82% in Fosun Pharma as of Sept. 2, the filing showed. Fosun High Tech provides investment management and consulting services.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

09-04-22 2351ET