Date
17 August 2017
Several media stocks jumped the 10 percent daily limit on Tuesday after President Xi Jinping unveiled his media revamp plan. Photo: HKEJ
Several media stocks jumped the 10 percent daily limit on Tuesday after President Xi Jinping unveiled his media revamp plan. Photo: HKEJ

Mainland media stocks soar on Xi revamp plan

Mainland media shares surged on Tuesday after President Xi Jinping unveiled plans to overhaul the sector.

Shanghai Xinhua Media Co. Ltd. (600825.CN), Zhejiang Daily Media Group Co. Ltd. (600633.CN), Northern United Publishing & Media Group Co. Ltd. (601999.CN), Wasu Media Holding Co. Ltd. (000156.CN) and Guangdong Guangzhou Daily Media Co. Ltd. (002181.CN) were among the stocks that jumped the 10 percent daily limit. The companies are all backed by state-owned media groups.

Other players in the sector also reported notable increases.

Xi on Monday said China will build several new-type media groups that are strong, influential and credible as he called for the integration of traditional and new media, Xinhua News Agency reported. Xi made the remarks while presiding over the fourth meeting of the Leading Group for Overall Reform.

“Xi attaches great importance to media … and attempts to integrate traditional and new media resources are not new,” the Communist Party mouthpiece People’s Daily said in a commentary on its official page on WeChat.

In the commentary, Shen Haixiong, deputy editor-in-chief of Xinhua, was quoted as saying that among the 100 most-discussed issues in 2013, about 70 percent broke out on new media platforms and half of the discussions were led by opinion leaders.

“Where the public discussions are happening is where the current media revamp will take place,” says the commentary.

The People’s Daily itself can be seen as a good example of this transformation.  While the newspaper pursues its sober style, the newspaper’s new media platforms use more colloquial expressions and buzzwords in a bid to build a young and vibrant image and connect with the younger generation.

In another indication of the growing importance of the state media’s new platforms, Xinhua News Agency’s smartphone app Xinhua Releases (新華發布) was the first to break the new on the investigation into former security tsar Zhou Yongkang on July 29.

In a related development, The Paper (澎湃), the 200 million yuan (US$32.27 million) new media project of the state-owned Shanghai United Media Group, was launched in July this year. Other new media projects by state-run media organizations are also queuing for launch.

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MY/JP/CG

EJ Insight reporter

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