Influx of ‘red capital’ raises fears for editorial independence in Hong Kong media

The restructuring of cash-strapped pay TV firm i-Cable Communications underlines the growing mainland Chinese presence in Hong Kong’s media sector.

While mainland investors are forbidden from holding a controlling interest in television stations under the communications regulatory regime, academics argue that the involvement of “red capital” will inevitably affect editorial decisions in local media – with or without political intention.

I-Cable’s white knight, Forever Top, led by property tycoon David Chiu Tat-cheong, counts two mainland investors as shareholders – Guangzhou R&F Properties chairman Li Sze-lim and John Zhao Huan, president of private equity firm Hony Capital. They will collectively control 18.75 per cent of shares upon completion of the deal.

“It appears to be a business decision, but it could have a political effect,” To Yiu-ming, associate professor in Baptist University’s department of journalism, said.