UPDATED with POW! statement: Hong Kong media and entertainment company Camsing International, owner of Stan Lee’s POW! Entertainment, plunged 90% on local exchanges today as it emerged that its chairwoman was arrested over the weekend.
Company founder Lo Ching was “currently being held in criminal custody” by the Shanghai Public Security Bureau, the company told the Hong Kong stock exchange without giving a reason for the detention.
According to the FT, the precipitous decline on the stock exchange wiped out around $700 million from Camsing’s market capitalization, which now stands at just over $80M.
Camsing, which bought Pow! in 2017, operates a theme park in southern China and sells merchandising based on movie brands such as Transformers and Kung Fu Panda.
POW! told Deadline that the arrest won’t be much of a bump in their proposed projects, they hope.
“Stan Lee’s POW! Entertainment is one of many subsidiaries of Camsing International Holdings,” a spokesperson for the company said in a statement Monday.
“We have been and will continue to be an independent operating unit with a separate and autonomous US-based management team,” the POW! rep added. “The news today is disturbing to us but will in no way impede our single-minded dedication to our mission as the guardian of the legacy of our founder Stan Lee, the greatest storyteller of our time. POW! will continue along with creative partners on its many existing and future projects to assure the memory and artistry of Stan Lee will live on for generations to come.”
Lo Ching is also chairwoman of Shanghai-listed construction firm Jiangsu Boxin Investing and Holding. That company also took a sizeable hit on Monday before recovering at end of play. In a statement to the Shanghai stock exchange, Jiangsu Boxin said Lo had been detained on June 20, while chief financial officer Jiang Shaoyang was detained on June 25.
This latest detainment comes amid a sustained government crackdown by Chinese authorities against perceived corruption in the media and entertainment spheres.
We have reached out to Camsing for comment.
Deadline’s Dominic Patten contributed to this report.