In December 2011, the film and TV drama producer dropped a total of 11.4 percent to 16.37 yuan per share over just five consecutive trading days after media reports said that Ge You, a star who was once a box office guarantee for Huayi Brothers, had signed a contract with Hong Kong-based Emperor Entertainment Group.
"Cast members, including lead actors and directors, are a key factor in the success of a film," Liu noted.
The SSE also required film companies to strictly follow the rules in disclosing the costs of their films and TV dramas, which analysts said are crucial to investors' decisions to buy or sell stocks.
"Investors could get access to more open and transparent information under the new guidelines," Liu Cuiping, research manager of Beijing-based entertainment research service EntGroup, told the Global Times Tuesday.
Another highlight of the guidelines is a request that listed companies "cautiously release promotion information."
All promotion activities, including online and social media marketing, should be seriously reviewed by the companies themselves so as to avoid unusual fluctuations of share prices, the guidelines said.
"This term of the guidelines could suppress speculation activities on the stock market, which sometimes occur when speculators release false information," Shen Zheyan, a researcher at Shenzhen-based CIC Industry Research Center, told the Global Times Tuesday.
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