By Yi Wei Wong
Shares of Fosun Tourism Group fell sharply in early trade following a report in Hong Kong media that its parent company is planning to trim its stake in the company.
The tourism company's shares were down 18% at the midday break, to 8.22 Hong Kong dollars ($1.05).
The Hong Kong Economic Journal reported early Tuesday that the Fosun International had placed 28 million shares of Fosun Tourism for sale at HK$8.57 a share in a block transaction.
Fosun International recently sold a stake in Shanghai Fosun Pharmaceutical (Group) Co., its unit announced in a Shanghai stock exchange release late on Friday.
The pharmaceutical unit's shares closed 13% lower due to the stake sale.
Fosun International's also recently said that it would reorganize its business portfolio to reduce debt following a downgrade by Moody's.
"The Group continues to strengthen investment management by actively striking a balance between investment and divestment, and disposing of its non-core assets when opportunities arise." the company said during its earnings presentation last week.
Write to Yi Wei Wong at yiwei.wong@wsj.com
(END) Dow Jones Newswires
09-06-22 0050ET