Li Ruigang – ‘China’s Rupert Murdoch’ – joins Hong Kong broadcaster TVB’s executive committee, expected to play bigger role

Mainland Chinese media tycoon Li Ruigang is joining the executive committee of Television Broadcasts’ (TVB) board of directors, Hong Kong’s biggest free-to-air broadcaster said in a filing to the local exchange on Tuesday. Li’s appointment to the company’s highest decision-making body is effective Wednesday.

The move suggests Li, also its largest shareholder, might play a bigger role at the company. “Li is a well-known media person in Hong Kong and mainland China. He has invested a lot in TVB. It is a natural move for him to take a bigger role at the broadcaster amid these challenging times,” Allan Zeman, chairman of Lan Kwai Fong Group and an independent director at TVB, said in an interview.

He added that the appointment showed Li’s commitment to the broadcaster. “His bigger involvement will lead to more positive development at TVB in the future,” Zeman said.

The broadcaster reported a net loss of HK$199 million (US$25.3 million) for the full year of 2018, after reporting a net profit of HK$243 million a year earlier, mainly because of a write-off of HK$500 million from its exposure to bonds issued by Chinese theatre operator SMI Holdings Group.

The loss might have pushed Li, often called “China’s Rupert Murdoch”, to end his silent involvement at TVB, said Louis Tse Ming-kwong, managing director of VC Asset Management.

“As a major shareholder, it makes sense for Li to decide to take a more active role in the management, or, at least, the important investment decisions at TVB after the heavy loss suffered with the SMI Holdings bond investment,” Tse said. “A more active role for him in the company will have a positive effect on the broadcaster, as he is an influential figure in the media industry.”