ZTO Express-W (02057) shares plummeted 5.00% during intraday trading on Wednesday. The significant decline followed the release of corporate updates that may have prompted investor concern.

The company announced that non-executive director Di Xu has resigned, effective immediately. The resignation follows the recent termination of an investor rights agreement with subsidiaries of Alibaba Group, potentially signaling a shift in the strategic relationship between the two companies.

Concurrently, ZTO Express adjusted the conversion terms for its US$1.50 billion 0.925% convertible senior notes due 2031. The conversion price was lowered by approximately 1.58% to US$30.4589 per share, increasing the potential number of shares issuable upon full conversion. This adjustment, a standard procedure following a dividend declaration, can be perceived as dilutive to existing shareholders, contributing to the negative market sentiment during the session.