IDG Takes Reins at China Finance Online

Filed in archive Private Equity on July 27, 2005

China Finance Online Company (Nasdaq: JRJC), a Chinese online financial information and listed company data provider bolstered its position in the crowded portal news information marketplace with the Elevation of Hugo Shong as the new chairman of their board.

Shong, an executive with International Data Group since 1993, assisted Mr. Patrick McGovern, the chairman, in establishing an initial $50 million IDGVC venture fund in Beijing, Shanghai and Guangdong. In the past few years, Shong has been an acknowledged rainmaker in directing IDG's acquistion or launch of nearly 10 IT publication joint ventures and magazines in China.

Although unconfirmed, IDG apparently held a 30 percent equity stake in China Finance Online. Some Hong Kong analysts have speculated that IDG invested nearly $5 million in China Finance Online.

Mr. Shong is responsible for IDG's businesses in 15 Asian countries and regions. He also serves as a director for several public and private companies in both China and the U.S. With a proliferation of of experienced bloggers providing investing insights and data on the China market, the media paid content landscape may prove challenging even for the IDG midas managment.