China Hongqiao's stock price plummeted 5.14% during intraday trading on Tuesday.

The sharp decline followed the company's announcement of a proposed international offering of RMB-denominated, USD-settled zero-coupon convertible bonds. The issuance, totaling RMB 10.2 billion, has sparked concerns among investors regarding potential equity dilution, triggering negative market sentiment and selling pressure.

Despite the near-term overhang from the convertible bond offering, the company's underlying fundamentals remain solid, with its subsidiary recently reporting a significant year-over-year increase in quarterly net profit.