Citi has lowered its target price for Haidilao (HK: 06862). This came after the restaurant chain agreed to extend a 100 million yuan loan to its chairman, Zhang Yong, for his personal financial arrangements.

Citi stated that this move could reignite investors' worries about the controlling shareholder's need for funds.

Analyst Xiaopo Wei wrote in a report: "Given that this loan occurred only about five weeks after the controlling shareholder reduced its stake on September 8, and considering the market is once again concerned about the controlling shareholder's liquidity needs, we expect investor sentiment toward Haidilao to turn negative in the near term."

Citi cut its target price for Haidilao from HK$19.3 to HK$15.5.