Friday, December 28, 2012
From Bloomberg BuisnessWeek:
Divorce has come to China. Once considered taboo, splitting up got much easier in 2003, when the state did away with a rule requiring that employers approve divorces. Last year China’s national divorce rate was 22 percent, according to the Ministry of Civil Affairs.
China’s raucous tabloid press is voraciously feeding off the trend, especially when it comes to covering high-profile divorces. Last summer, venture capitalist Wang Gongquan announced over the popular microblog Sina Weibo that he was leaving his wife for his mistress: “To all friends and relatives, to all colleagues, I am giving up everything and eloping with Wang Qin,” he tweeted. “I feel ashamed and so am leaving without saying goodbye.” In October newspapers revealed details of 61-year-old real estate mogul Wang Shi’s impending divorce and his alleged affair with a 31-year-old actress.
Investment analysts also take a keen interest in these big-money divorces, for the simple reason that many of the tycoons and their soon-to-be-ex-spouses control big chunks of their companies’ stock. In that way, the potential corporate fallout from a divorce is greater in China than in the U.S., says Andrew Collier, managing director of Orient Capital. “Shareholding in the U.S. tends to be more diffuse,” he says.
Read more here.