Date
14 December 2017
Digital Domain Holdings has issued a clarification to the Hong Kong stock exchange after being linked to an investigation in the mainland. Photo: Internet
Digital Domain Holdings has issued a clarification to the Hong Kong stock exchange after being linked to an investigation in the mainland. Photo: Internet

Digital Domain moves to stem share plunge

Investment holding company Digital Domain Holdings Ltd. (00547.HK) moved to put a floor under its spiralling stock price after being linked to an investigation in the mainland.

The investigation involves bondholder Che Feng, the Hong Kong Economic Journal reported Friday.

Digital Domain said Che is neither a director nor a senior executive of the company.

He owns bonds convertible into 4.76 billion shares, equivalent to about 23 percent of the stock, the report said, citing a stock exchange filing.

The statement followed reports that Che is being investigated for unspecified offenses.

Che is a son-in-law of former central bank governor Dai Xianglong, according to the filing.

Mainland news website caixin.com earlier reported that Che ultimately controls Digital Domain with a 35 percent stake jointly held with two associates —   Zhou Jian and Zhang Xiaoqun.

Che has been actively investing in Hong Kong’s capital market in the past several years through an offshore vehicle.

One of his most notable investments is a stake in Hi Sun Technology (China) Ltd. (00818.HK), the report said. 

Digital Domain closed down 14.3 percent to HK$1.08 on Thursday after losing 41.4 percent on Wednesday. 

The company later said in a press release that its business operations remain “solid”.

Meanwhile, it said it will work with joint-venture partner Immersive Ventures to create leading-edge video content and services.

Translation by Vey Wong

[Chinese version中文版]

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