Shifang shares nosedive after reports Beijing is investigating Ip Man 3 box office takings
Film reportedly took a record day one box office of 150 million yuan
Shares of Shifang, which owns rights to the Ip Man 3 martial-arts film, hit a one-year low on Thursday after media reports Beijing was investigating alleged box office ticketing fraud.
The company plunged 59 per cent from Wednesday’s close to 76 HK cents shortly after the lunch break on Thursday, but the loss narrowed to 36.70 per cent when the market closed for the day, with the stock last trading at HK$1.19.
Louis Tse Ming-kwong, a director of VC Brokerage, said Shifang, an investor in the film, would still be affected by the investigation even though it was not the film’s distributor.
“The company, as an investor in the film, would share any earnings from the box office tickets sales,” he said. “If the investigation found out the box office tickets sales were inflated and not as high as those reported, then Shifang would also receive less from the box office. This is why investors are selling the shares.”
If the investigation found out the box office tickets sales were inflated and not as high as those reported, then Shifang would also receive less from the box office
Castor Pang, the head of research at Core Pacific Yamaichi Hong Kong, said investors were panic selling the company on reports of the investigation.
