Monday, 12 October 2009
Caijing magazine’s business chiefs resign
Top business executives at Caijing magazine, the mainland’s most influential business publication, have resigned en masse, heightening speculation its ownership may change hands soon or that its managing editor and founder, Hu Shuli, may leave and start her own publication.
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Caijing magazine’s business chiefs resign
Speculation mounts on Caijing’s future as mass exodus looms
Al Guo
12 October 2009
Top business executives at Caijing magazine, the mainland’s most influential business publication, have resigned en masse, heightening speculation its ownership may change hands soon or that its managing editor and founder, Hu Shuli, may leave and start her own publication.
Caijing general manager Daphne Wu Chuanhui and eight of her nine business directors have resigned, according to reporters briefed about the resignations. A staff member with the magazine, who requested anonymity, confirmed yesterday that about 70 per cent out of a little more than 100 employees in the business department had resigned or would submit letters very soon.
The exodus would be a blow to the mainland’s most profitable financial magazine, as nearly all the profits, such as advertising, distribution and hosting financial conferences, have come from Wu’s unit.
It is believed that the departure of Wu’s team is part of increasingly intriguing manoeuvrings between Hu’s team and the magazine’s owner and publisher, the Stock Exchange Executive Council (SEEC), headed by former Wall Street banker Wang Boming. It is thought Hu had been trying to pressure the management into surrendering majority control by bringing in outside investors, otherwise she would leave and launch new business publications.
The Caijing staff member said Hu had not yet officially resigned and was making last-ditch efforts to strike a deal. “I would say the tempo of getting a clear answer on Caijing’s future is accelerated now,” the staffer said.
Neither Hu nor Wu would comment when contacted, and Wang was unavailable for comment.
Rumours that Hu planned to resign from Caijing and set up shop on her own have been circulating for the past few weeks. Caijing issued an official statement on September 28 denying any personnel changes and threatening to take legal action against rumour-spreaders.
Hu, with the full support of the SEEC management, has built Caijing - founded in 1998 - into a publication known for stinging investigative reports and sharp commentaries on mainland financial and social issues.
But as Hu’s team tried to improve the magazine’s standards and reputation by strengthening professionalism and corporate governance, her team and the management have seen growing differences on editorial policy and direction, according to people familiar with the situation at Caijing. Hu is believed to have asked for a bigger say in the financial management of the magazine, but the management has not complied.
Insiders suggested that Hu has become increasingly frustrated by Wang’s decision to take away the majority of Caijing’s annual advertising revenue, estimated at more than 200 million yuan (HK$227 million), leaving only a small portion for her budget.
Hu enjoys widespread support among reporters and marketing employees. Her departure would certainly trigger an exodus by the majority of the 180 reporters and editors at the magazine. But the possibility of Hu’s team reaching a deal with the SEEC management remains, as several mainland companies have expressed an interest in buying majority control of the magazine.
The potential buyers include Tsinghua Tongfang, a computer and electronics conglomerate owned by Tsinghua University, and a state-owned media group in Jiangsu .
The developments at Caijing could affect a venture by Hong Kong tycoon Richard Li Tzar-kai to launch a new financial news service in partnership with Caijing.
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