Shares of GUOTAI JUNAN I (01788) experienced a significant downturn in Tuesday's intraday trading, plummeting 16.09% as investors reacted to news of a major shareholder transfer and recent loan agreements.

The sharp decline comes in the wake of a substantial share transfer that occurred on November 3. A shareholder of GUOTAI JUNAN I transferred shares from Guotai Junan (Hong Kong) to UBS Securities Hong Kong Limited, with a transfer value of HK$1.975 billion, representing 5.44% of the total holdings. This significant shift in ownership structure appears to have triggered concerns among investors, potentially indicating a lack of confidence from a major stakeholder.

Adding to the market's unease, GUOTAI JUNAN I had previously announced on September 4, 2025, that it had entered into several commitment loan agreements with certain banks for revolving credit facilities totaling up to HK$1.3 billion. While these facilities, set to mature in 12 months, could provide the company with additional liquidity, they may also have raised questions about the firm's financial position and future funding needs. The combination of the major share transfer and these loan agreements seems to have compounded investor worries, resulting in the substantial sell-off observed in Tuesday's trading session.