Shenzhen, China in the past six years, China Television Media Co., VISN -4.15% up to $ 1.15 million initial public offering in the United States, China has not told the American Broadcasting Company Investor, its co-founder of the Chinese Communist Party's daughter a senior figure.
If you can have a number?
Omission is legitimate. But it shows that China's transparency standards and expectations of American investors varies widely between.
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James · T. Areddy / The Wall Street Journal
China headquarters in Shenzhen, as the media, the radio and television editing cut video to appear in a national public transport system, its co-founder and daughter of senior Communist Party figures.
Overlap with the business issues, China's political interests inconsistent stacked in the United States and China how to deal with information. In the past year, Beijing and Washington on the joint specification of jurisdiction auditors and enforce legal ruling. Accused the United States on China hedge funds wiped a few in the U.S. listed company engaged in accounting fraud of billions of dollars in market value, also a record share of the company has not been accused of wrongdoing. Recently in China, one scandal after another, business and politicians have emphasized the relationship between relatives.
In the United States, the media often contact officialdom business. But the government's policy to cut such a review in China, the relatives of senior politicians tend to believe that corporate positions.
Disclosure of Personnel of China, you can shake the market. China Satellite Communications Ltd., the last son named chaired its listed subsidiary's shares soared about 50% within a few days, the then Chinese Premier Wen Jiabao.
Reductions in other ways to connect weeks after the overthrow of the former communist star Bo Xilai his government posts. Shares quickly fell by 10%, China Everbright International Limited, 0257.HK -0.97% Bo's brother is an energy company vice chairman. Brother suddenly resigned, saying it was good for the company, the share price rose.
To hiring practices at JP Morgan Chase Morgan -2.32% & CO, United States Securities and Exchange Commission a survey disclosed this month, the signal appears fresh regulatory target company hired Chinese officials concerned relatives. Morgan says it is co-operation.
In a fallen Chinese politician Bo Xilai, as of Monday, corruption trial prosecutor drew the testimony of witnesses to prove businessman looking at how to maintain a good relationship with his family, he treats private jet travel and French holiday home. Bo Xilai denies bribery.
In Albion Financial Group in Salt Lake City, assets under management more than 70 billion U.S. dollars, a portfolio manager Jon Larsen had hired a private investigator to examine his Chinese investment link. , "He said:" We have learned that these companies do a lot of good [stock market] if they are connected.
As the political winds shift, connecting a "warning sign", in Hong Kong, Matthews International Capital Management, which manages more than 24 billion U.S. dollars, chief investment officer Robert Horrocks.
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Shangguan Chau Tung / Wall Street Journal
Chinese football on the TV screen provides highlights Beijing Subway.
Chinese companies listed in the U.S. political relations enjoyed by how much is unknown. This makes it all but impossible to quantify this relationship may decide whether and how the profitability of a company or its stock market performance. However, indications that the company trying to keep secret association with political families told some analysts, they do. "If they did not reveal correlations suggest that investors relations; they do not want to admit," said David Webb, a Hong Kong-based investor rights.
However, to determine who is in business in China can be difficult and dangerous. Last week, the Shanghai police arrested a well-known enterprise surveys, Peter Humphrey, the British suspected violations of privacy unnamed people through illegal access to personal identity and the details of the properties held, issued a statement from his family, Chinese state media published account. "We use illegal means to obtain personal information of this situation, I am very sorry, apologize to the Chinese government," a handcuffed Mr. Humphrey interview with reporters, said that in China Central Television broadcast. Shanghai authorities have refused to comment on the matter.
Based in Shenzhen, China, as the media in December 2007 public offering to raise funds in the NASDAQ stock market, the establishment of what is now China's largest network broadcast video in the subway and buses. One of its founders, 30%, is Liang Yanqing. Ms. Leung initial shares over USD $ 5.2 billion valuation, but documents show that she cashed out about $ 2.8 billion. She is still a director.
In response to the question from the Wall Street Journal, China Television Media confirmed that 41-year-old Miss Liang Wang Song will marry a son, 44-year-old Wang Gang, the Chinese Communist Party a senior figure.
70-year-old Mr. Wang in November the 25-member Politburo retired, spent a decade later, the Communist Party's decision-making body, the Board of Directors of the alternate. His responsibilities include managing the party's secretariat, its internal office and the party's confidential matters. He remained active, such as the Congolese delegation in June to meet the state affiliated think tank, said China Economic and Social Council chairmen.
China Television Media, said Ms Leung's family is connected to its business related, Wang has no effect. It also said that its disclosure comply with U.S. regulations.
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James · T. Areddy / The Wall Street Journal
China Television Media co-founder, chairman and CEO Li Limin,
"If you think this political family [link] is a good thing, then it's good, said:" China, as the media and other co-founder, Chairman Li Limin, in an interview with reporters. "If you think this is a bad thing, do not buy our shares."
SEC requires U.S. listed companies to disclose "related to human relations," may affect the operations, such as dependent on one customer, contract, or benefactors.
"There is no one particular line project management of these family relations, said:" John · F · Olson, is a company specializing in corporate governance and securities law firm Gibson, Dunn & Crutcher law firm in Washington. "But this does not mean that they are not relevant, especially in the initial public offering, a special burden, so that investors know who they deal with."
Ms. Leung and Mr. Wong, her husband, did not respond to requests for comment. Mr. Wang Lao can not be reached.
Documents show that Ms. Leung and young Mr. Wang has a common business interests, in a company called Beijing Public moist Investment Co., China Television Media already owns 30% of the entity held by the listed company of several major business license, according to the common in the structure of Chinese enterprises.
Chinese media said that this depends on government contracts, making it China's largest radio advertising in the subway and buses of news and entertainment, with a potential four million viewers per day.
Submission, China Television Media introduced Ms. Leung as its co-founded in 2005. It cites her only previous work experience, eight years after graduation, a telephone company's human resources department.
China Television Media's chairman, Lee said, after he was involved in broadcasting Ms. Leung and her property and the development of a family friendship multiple partnerships. "We are real estate developers, for a long time," he said. "There are more experienced people in this [broadcasting] industry, but we understand the policies and future development opportunities." He said, China, as the media is in full compliance with its regulatory filings in the United States.
In China, as the main media, pre-IPO investors to understand his political affiliation. In 2006, the New York hedge fund OCH-Ziff Capital Management Group OZM -3.91% investment of approximately $ 14.2 million, China Television Media. During the due diligence found that China, as the media has led China's relations with investors to participate. OCH-Ziff declined to comment.
The following year, Lou led to the financial capacity of the company's investment in China Television Media $ 40 million, including co-founder, is headquartered in Shanghai milestone Capital Management Ltd. "We definitely did not make the connection based on investment, said:" Ms. Lou. "Of course, I know that her husband's father was a government official."
Investment banker Robert Charles led the Chinese public offering in the United States, as the media while at Merrill Lynch, said it was meaningful restrictions emphasis Ms. Leung in the IPO process, because she will have only one director, rather than performing. However, Zhao said that he thought she was Chinese, as the media of the "strong ties key in the relevant field."
Albion's Mr. Larsen recalled that after he bought more than 400,000 U.S. dollars for NASDAQ, he only found the Chinese media connection, hired an investigation. "We hired our own detective," he said.



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