By Clarence Leong


Shares of WuXi AppTec Co. declined sharply in Hong Kong Monday after its largest shareholder announced it planned to cut its stake.

Wuxi AppTec's Hong Kong-listed shares slumped up to 11% in early trade, and was last 10% lower at HK$94.35. The stock is on track for its worst one-day percentage loss since March.

Its A-shares were also 10% lower at CNY92.57.

The Chinese pharmaceutical company's controlling shareholder and others plan to sell up to 3% of the company, it said in a filing late Friday. The disposal, to be carried out between July 4 and Sept. 30, has been proposed due to the "capital needs" of selling shareholders, according to Wuxi AppTec. The shares will be sold by either bidding or block trading, it said.

Wuxi AppTec is mainly owned by a consortium which holds about 23% of the company.

The planned disposal is "the key reason for the selldown today for Wuxi AppTec," UOB Kay Hian analyst Carol Dou said. The fact that "the largest shareholder is reducing its shareholding" has hurt investor sentiment, Ms. Dou said. But the wider market is also weak, and the company's operations are solid, she added.

The benchmark Hang Seng Index was last 2.5% lower at 21254.74.


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


(END) Dow Jones Newswires

06-12-22 2314ET