(Yicai Global) Jan. 19 -- Shares in Kuaishou plunged today after the Chinese rival to TikTok said that its founder and chief executive officer offloaded 1.2 percent of the company’s total share capital yesterday at a price slightly less than the closing price, securing HKD3.7 billion (USD472.6 million).

Kuaishou’s share price [HKG:1024] was trading down 5.9 percent at HKD68.20 (USD8.71) as of 3 p.m. China time today. Earlier in the day it sank to HKD68, the lowest so far this year.

Reach Best Developments, which is owned by Su Hua and his family, sold 54.7 million shares at a price of HKD69.05 each after the close of trading, the Beijing-based short video platform said yesterday. The sale price was 4.7 percent less than the company’s closing price of HKD72.50 that day.

After the sale, Reach Best Developments still holds 427 million shares in Kuaishou, or 9.8 percent of the firm, and retains 38 percent of voting rights. Su remains the controlling shareholder and the transaction will have no effect on the company’s operations, the firm said.

Editor: Kim Taylor