In China, Tycoons' Divorces Hurt Stocks

As Chinese tycoons dump spouses, investors often suffer

Wu Yajun, China's most successful female entrepreneur, is estimated to have lost $2.92 billion during her divorce this yearPhotograph by ImagineChina

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By Christina Larson

December 6, 2012 at 10:27 PM UTC

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This article is part of the December 10, 2012 issue of businessweek.

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.