Great Wall Movie Shares Fall After Chinese Court Offers Reward to Find Father, Son's Assets
Liao Shumin
DATE:  Dec 25 2019
/ SOURCE:  yicai
Great Wall Movie Shares Fall After Chinese Court Offers Reward to Find Father, Son's Assets Great Wall Movie Shares Fall After Chinese Court Offers Reward to Find Father, Son's Assets

(Yicai Global) Dec. 24 -- Shares of Great Wall Movie and Television fell for a second day after a court in China offered up to CNY26 million (USD3.7 million) for help tracking down assets owned by the father and son team in charge of the embattled production house.

Great Wall Movie [SHE:002071] closed down almost 2.8 percent today at CNY3.54 (51 US cents), after earlier trading 4.9 percent higher and 10 percent lower, the daily exchange-imposed maximum. That follows a 10 percent plunge yesterday.

The Intermediate People's Court of Hangzhou Municipality ruled in June that Zhao Ruiyong and Zhao Feifan must compensate China Construction Bank's West Lake branch CNY130 million (USD18.6 million) for defaulting on a loan. When no payment was forthcoming, the bank applied to the court for enforcement of the judgment.

Now the court is offering up to 10 percent of the value of the compensation per defendant for information to uncover their assets such as deposits, real estate, stocks and matured debts, according to an announcement made on the court's WeChat account yesterday.

The unrecovered CNY130 million is just the tip of the iceberg for the Zhangjiagang, Jiangsu province-based firm. Compensation for a further CNY100 million in defaulted loans is being pursued by the Bank of Communications. Great Wall Movie issued statements last month saying it is embroiled in three cases of litigation.

Three other mainland-listed firms controlled by the father and son duo -- Great Wall International Animation Comic Game, Tianmushan Pharmaceutical and Great Wall Belt & Road Holdings -- are involved in a further 20 lawsuits. The pair have had most of their stockholdings frozen and have been questioned by regulators several times.

The stock price of the firms under their leadership has fluctuated. In the 12 trading days between Dec. 5 to Dec. 20, for instance, Great Wall Movie [SHE:002071] gained over 45 percent.

Great Wall International [SHE:000835] rose nearly 1.9 percent today after dropping by the 10 percent daily limit yesterday. Shares of Tianmushan Pharmaceutical [SHA:600671] rose almost 1.6 percent to CNY12.32 each, while Great Wall B&R [HKG:0524] jumped 6.2 percent to HKD0.15 (2 US cents).

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Keywords:   Great Wall Movie and Television