(Yicai Global) June 7 -- Shares of 360 Security Technology fell after the founder and chairman of the Chinese internet security giant transferred almost CNY6.8 billion (USD955.3 million) of equity to his ex-wife due to a divorce.

360 Security [SHA: 601360] dropped as much as 3.1 percent intraday and closed 1.5 percent lower at CNY15 (USD2.10).

Chairman Zhou Hongyi completed transfer of 447 million shares or nearly 6.3 percent of the total to his ex-wife Hu Huan, the Beijing-based company said in a statement yesterday, citing the divorce settlement. 

The stake is valued at almost CNY6.8 billion based on yesterday's closing price. The stock price has fallen over the past two months so Hu would have gained nearly CNY9 billion if she had received the equity when the divorce was announced. However, the shares have more than doubled this year in value amid the emerging trend of ChatGPT and similar large language models in China and the resulting need for online privacy protection. When 360 Security first said on April 4 that the ex-couple had gone through the formalities of their divorce the company's share price rose 4.6 percent that day.

The antivirus software developer's controlling shareholder and actual controller will remain the same and its operations and management will not be substantially influenced by the change in shareholder structure, the firm added yesterday.

Zhou and Hu settled their divorce in a friendly manner, 360 Security told Yicai Global in April. Board Secretary Zhao Luming refuted rumors of fraud as netizens suspected the chairman was planning to cash out by filing for a fake divorce. "Divorce is a serious matter and affection weighs more than money," Zhao said on social media.

Editors: Shi Yi, Emmi Laine