Caixin
BUSINESS & TECH

Huayi Brothers Founders’ Large Pledge of Shares Raises Eyebrows

Huayi’s stock has been plunging since June 1. Photo: VCG
Huayi’s stock has been plunging since June 1. Photo: VCG

A major Chinese film studio that has been in the spotlight following recent allegations of questionable contracts in the industry is under further scrutiny with revelations that the two co-founders have pledged most of the shares they own as financing collateral.

Shenzhen-listed Huayi Brothers Media Corp. said in an exchange filing last week that its founders, Chairman Wang Zhongjun and his brother, President Wang Zhonglei, have pledged a total 694 million shares, or about 25% of the company’s total. The Wang brothers held a combined 28.2% stake in the company as of March 31.

ladingImg
You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.