(Yicai Global) Jan. 11 -- Shares of Xiabu Xiabu Catering Management plunged for the second consecutive day following an online rumor that its second-largest shareholder offloaded its entire stake in the Chinese hotpot chain after the stock more than doubled in value from November.

Xiabu Xiabu [HKG: 0520] closed 4.5 percent lower at HKD8.70 (USD1.11), after sliding by as much as 8.6 percent earlier today and 7.8 percent yesterday. The Beijing-based company’s stock price is up 115 percent since the start of November.

According to recent market rumors circulating online, General Atlantic Singapore Fund, a unit of leading global growth equity investor General Atlantic, has sold its 147 million shares in Xiabu Xiabu for between HKD9.25 and HKD9.30 apiece.

Founded in Singapore in 2011, General Atlantic Singapore Fund is Xiabu Xiabu’s second-largest shareholder with a 13.5 percent stake, according to the most recent financial statement from the restaurant chain. Its biggest shareholder is founder He Guangqi.

Xiabu Xiabu’s China business is recovering, Securities Times reported today, citing the company. Xiabu Xiabu will continue its comprehensive expansion strategy and open more than 240 new stores at home and abroad this year, it added.

Editor: Futura Costaglione