Television and advertising shares rise on news of SMG's split
Television production and advertising shares soared yesterday and today on news that media giant Shanghai Media Group (SMG) is to split into two companies in accordance with China's State Administration of Radio, Film and Television (SARFT) restructuring plans.
The company will be split into Shanghai Radio & TV, to handle news operations and certain core-technologies as a public service, and Shanghai Oriental Media Group which will continue to be called SMG, and will take over all non-news production. SMG will still be owned by Shanghai government but with plans to open to public investors in the future.
The move signals further reform of the sector designed to stimulate investment and support commercial content production.
SinoMedia Holding Ltd. (HKG:0623) has risen 21 percent since Monday. China Television Media, Ltd (SHA:600088) has risen to the 10 percent limit for two days/ Shanghai Xinhua Media Co., Ltd (SHA:600825) rose 4 percent yesterday. Beijing Bashi Media Co., Ltd. (SHA:600386) rose 6.3 percent today.
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