Li Ruigang defends indirect investment in TVB, saying his company ‘followed the rules’

Li Ruigang, chairman and founder of China Media Capital (CMC), mainland China’s most influential media and entertainment investor, said the company had complied with Hong Kong’s laws and regulations in acquiring an indirect stake in Television Broadcasters, in keeping with its practise of playing by the rules when it enters new markets.

“We have to follow the rules and regulations in Hong Kong. We will let the regulators to examine the situation,” said Li, who is also vice-chairman of TVB.

Li, dubbed China’s Rupert Murdoch, was referring to his indirect investment in TVB, the city’s Hong Kong’s dominant free-to-air broadcaster.

CMC is the single largest shareholder in TVB through its investment in Young Lion Holdings, which owns a 26 per cent stake. CMC became an indirect investor in TVB when it bought an undisclosed stake in Young Lion in April 2015.

Li’s holdings in TVB generated fresh discussion last month when the city’s stock market regulator, the Securities and Futures Commission flagged concern at CMC’s influence in TVB’s management, after the broadcaster disclosed its shareholding structure.

The regulator highlighted that CMC, which owns the majority of non voting shares in Young Lion, had great influence over the appointment of directors at the broadcaster, and could have sway in the broadcaster under the relationship agreement signed between Young Lion and CMC.