U.S. Investor Tries to Shake Up Sina, a Pillar of China’s Internet
- 7 years ago
U.S. Investor Tries to Shake Up Sina, a Pillar of China’s Internet
Sina, one of the first Chinese tech companies to list its shares in New York, has
called Aristeia “self-serving” and naïve about how China’s internet sector works.
Under those arrangements, shareholders have rights to the profits of a company,
but they do not control key assets — potentially leaving them exposed if the company runs into trouble or the Chinese government declares the structure illegal.
Based on their stock market values, Weibo is now more than twice as valuable as Sina — a gap
that Aristeia says points to lackluster management and poor corporate governance.
In turn, Aristeia, which manages $3 billion in investor money, has accused Sina of “failing
to hold itself to the standards expected of U. S.-listed public company boards.”
Foreign investors seem less than worried about any lack of control or lapses in corporate governance if the market is any indication.
Sina, one of the first Chinese tech companies to list its shares in New York, has
called Aristeia “self-serving” and naïve about how China’s internet sector works.
Under those arrangements, shareholders have rights to the profits of a company,
but they do not control key assets — potentially leaving them exposed if the company runs into trouble or the Chinese government declares the structure illegal.
Based on their stock market values, Weibo is now more than twice as valuable as Sina — a gap
that Aristeia says points to lackluster management and poor corporate governance.
In turn, Aristeia, which manages $3 billion in investor money, has accused Sina of “failing
to hold itself to the standards expected of U. S.-listed public company boards.”
Foreign investors seem less than worried about any lack of control or lapses in corporate governance if the market is any indication.