Mainland SOE enters HK media industry

QingdaoWestCoastHoldingsbuystheownerofMingPaoWeeklyfor$64.2m

State－ownedQingdaoWestCoastDevelopmentGroupCoLtdhasboughtMediaChineseInternationalLtd'ssubsidiary,theownerofMingPaoWeeklyinHongKong,forHK$498million($64.2million),inthelateststepbymainlandcompaniesintotheoverseasmediamarket.

MediaChineseInternationalsaidonMondayinastatementthatitssubsidiary,OneMediaGroupLtd,sold73.01percentofitssharesandmediabusinessincludingitsHongKongpublication,MingPaoWeekly,andrelateddigitalbusinesstoQingdaoWestCoastHoldings(International).

ThecompanyistheinvestmentarmofQingdaoWestCoastDevelopmentGroup,setupin2012bytheQingdaogovernment,withregisteredcapitalof10billionyuan.

ItisinchargeofthedevelopmentandconstructionworkofWestCoastNewArea,Qingdao'seconomicandtechnologicaldevelopmentzone.

SharesofMediaChineseInternational,whichresumedtradingonMondayafternooninHongKong,rose14.05percenttoHK$1.38attheclose.

MediaChineseInternational,aleadingChineselanguagemediaplatform,hasfivewell-establishedChineselanguagenewspapers,includingMingPaoDailyNews,oneofthemostinfluentialandcrediblenewspapersinHongKong.

FoundedinNovember1968byMingPaoDailyNews,MingPaoWeeklyisalifestyleandentertainmentmagazinetargetedatmiddle-classreadersinHongKong.Itcontentscoverentertainmentnews,film,tourism,fashiontrendsandculture.

MingPaoWeeklyisalsoOneMediaGroup'smainturnovercontributingbusinessfortheHongKongsegment.

It'snotthefirsttimeamainlandcompanyhaspurchasedaHongKongmediagroup.

LastDecember,internetgiantAlibabaGroupHoldingLtdspentHK$2.06billiontoacquirethemediaassetsofSCMPGroup,includingtheSouthChinaMorningPost.

HongKong-basedanalystssaiditisprobablyanotherstepinAlibaba'squesttobuildamediaempire.

"ItisatrendformainlandcompaniestoinvestintheHongKongmediaindustry,"saidVictorFungKeung,principallecturerattheCommunicationSchoolofHongKongBaptistUniversity.

"Inthenext10years, 80percentoflocalmediawillbesupportedbycapitalfromthemainland,"hesaid.

"Itisawin-windeal,"heexplained,sayingthatmainlandcompaniescanlearnhowtooperateoffshoremedia,preparingthemforthefurtheracquisitionofmediacompaniesinotherplaces.

(CHINA DAILY)