Shares of STAR CM Holdings Ltd. (Ticker: 06698.HK), the parent company of "Sing! China," plummeted almost 20% during afternoon trading. By the time of reporting, the stock had declined by 16%, trading at HKD 55.30 with nearly HKD 100 million in transactions. Since August 18, the stock has seen a cumulative drop of over 50%, erasing over HKD 26 billion in market value in just six trading days.
Zhejiang Television Announces Suspension
In an official post on its Weibo account, Zhejiang Television announced that, in response to feedback from viewers and online users regarding issues with "Sing! China," the program would temporarily halt its broadcast.
Zhejiang Radio and Television Group addressed the recent controversies surrounding "Sing! China" on the evening of August 20. The group pledged to investigate the matters further and invited oversight from its audience and online users.
A Brief Overview of Sing! China's Success
Eleven years ago, "Sing! China" was among China's most popular variety shows. It was a collaborative effort between Zhejiang Television and Canxing Productions, a subsidiary of STAR CM Media. STAR CM's revenues once saw almost a third contributed by "Sing! China". However, that contribution has been dwindling over the past three years.
Coco Lee Recording Sparks Controversy
On the evening of August 17, an audio recording purportedly of the late singer Coco Lee, in which she discussed facing unfair treatment while participating in "Sing! China," came to light. This revelation quickly became a trending topic across several online platforms.
Later that night, the "Sing! China" production team issued a statement. In their response, they condemned certain media outlets for spreading what they called maliciously edited recordings of Coco Lee criticizing the 2022 season of "Sing! China". They deemed it disrespectful to the deceased and damaging to the show's reputation.
Furthermore, the production team remarked that any misunderstandings had been promptly addressed and resolved at the time. Out of respect for the departed, they chose not to elaborate further on the matter.
Despite the show's response, the heated discussions among netizens did not subside. Multiple topics related to "Sing! China" surged in online searches, keeping the controversy alive.
As the debate raged on, STAR CM's stock price continued its downward trajectory, influenced heavily by the ongoing events.
